Home / Industry / Banking /  Paytm’s loan disbursal jumps 365% to 2,180 cr in Dec qtr
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NEW DELHI : Paytm operator One97 Communications Ltd recorded “stellar growth" in the December quarter, on the back of a rapid scaling of its lending business, it said on Monday.

Loan disbursal volumes during the quarter shot up 401% year-on-year to 4.4 million and value jumped 365% to 2,180 crore, One97 Communications said in a stock market disclosure.

The announcement came on a day broking firm Macquarie slashed Paytm’s target price by 25% to 900 per share from 1,200.

HDFC Mutual Fund, one of the four mutual funds that were anchor investors in its initial public offering (IPO), has reduced its holding in Paytm, following its disappointing market debut in November.

Shares of Paytm closed at 1,157.9 on BSE on Monday, down 6.01% from the previous close. The shares had an issue price of 2,150 and had listed at a 9% discount.

The fintech company’s gross merchandise value grew 123% year-on-year to 2.5 trillion during the December quarter, it said. Paytm’s monthly transacting users (MTU) showed consistent growth in this fiscal, with 64.4 million average MTUs during the period under review, a growth of 37% year-on-year, it said.

Paytm was India’s largest public issue, raising 18,300 crore, comprising a fresh issue of 8,300 crore and an offer for sale of 10,000 crore by several shareholders, including founder Vijay Shekhar Sharma and the investors.

However, a 27% plunge in its 18 November debut made it one of the worst listings by a major technology firm since the dot-com bubble era of the late 1990s.

Paytm’s shares have declined 38% since its dismal listing.

The 11-year-old Noida, Uttar Pradesh-based company has expanded beyond digital payments into newer categories of lending, gaming, wealth management, financial services, and digital commerce.

For the year ended March 2021, Paytm’s consolidated revenue shrunk 11% to 3,187 crore, but it cut losses by 42% to 1,701 crore.

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