Paytm merchant payments volume rise by 44% YoY in Jan, no. of loans up by 103%
2 min read . Updated: 08 Feb 2023, 12:17 PM IST
PremiumPaytm(One 97 Communications) registered a 44% YoY rise in its merchant payments volume in January 2023. The company also disbursed a total of 3.9 million loans in last month, which was a 103% jump from January 2022
Paytm's merchants payment volume(GMV) rose by 44 per cent YoY to ₹1.2 lakh crore in January 2023, the company said on Wednesday. Its average monthly transacting users (MTU) grew by 29% YoY to 89 million last month.
Notably, the company is witnessing an upward trajectory of its growth in loans and monthly users in past few months. Last month, the company disbursed a total of 3.9 million loans through its platform, which is 103% higher than the amount of loans the company had disbursed in January 2022.
Also Read: Paytm Q3 consolidated loss narrows to ₹392 crore
Reflecting the growth of the number of disbursed loans, Paytm witnessed a whopping 327% jump in the amount of loans disbursed through its platform in January 2023. The value of loans disbursed through Paytm reached to ₹3,938 crore last month from ₹928 crore in January 2022.
Notably, the shares of One 97 Communications Ltd(Paytm) continued to rally for last three days. The fintech firm's share jumped more than 6 per cent to ₹624 apiece on the BSE in Wednesday's opening sales, after the announcement of its operations performance for the month of January.
The company witnessed an impressive increment in its consumer engagement. The company's model of payment devises helped it to continue dominating the offline payments. By the end of January, the company had earned a total of 6.1 million merchant subscriptions. The number of subscribed payment devices grew by 0.3 million in a year.
In its stock exchange filing on Wednesday, Paytm said, "With our subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution."
Paytm Gross Merchandise Value growth in January 2023
The company said its Merchants Payements Volume rose by 44 per cent YoY to ₹1.2 lakh crore in last month. In its stock exchange filing, the company said that it is focusing on the growth of payment volumes which is the major source of company's profit. Payment volumes generate profitability for Paytm either through net payments margin or from direct upsell potential.
The company also expressed its confidence in its paymentts consumer and merchant base that can offer a large addressable market for long term growth.
The company earned a milestone in its Decemper quarter results in terms of operating profitability. Paytm's earnings before interest, taxes, depreciation and amortisation(EBITDA) before employee stock ownership plan(ESOP) cost stood at ₹31 crore with Ebitda before ESOP margin at 2 per cent of revenues.
In addition to that the fintech giant's revenue from operations also rose by 42 per cent annually to ₹2,062 crore.
