BackPaytm Q4 results: Fintech giant's consolidated net loss narrows sharply to ₹167.5 cr, revenue up over 51% YoY
Paytm Q4 results: Fintech giant posted a healthy quarter with a steep narrowing in consolidated net loss, while revenue sees a strong double-digit growth YoY.
PremiumFintech giant, Paytm's consolidated net loss narrowed sharply to ₹168.4 crore in the fourth quarter of FY23, compared to a loss of ₹761.4 crore in Q4 of the previous year. The performance was aided by an increase in GMV, higher merchant subscription revenues, growth of loans disbursed, and full years’ UPI incentives reported during the quarter.
Paytm had posted a loss of ₹392 crore in December 2022 quarter.
In terms of the top-line front, Paytm's revenue from operations stood at ₹2,334.5 crore in Q4FY23, registering a growth of 51.5% from ₹1,540.9 crore in Q4FY22 and up by 13.2% from ₹2,062.2 crore.
Also, due to sustained improvement in contribution profit and operating leverage, Paytm achieved EBITDA before ESOP valued at ( ₹176 crore) and further reported improved EBITDA by ₹602 crore YoY.
Furthermore, subscription services for payment devices, such as Soundbox and POS machines, witnessed an increase in adoption, with 68 lakh merchants paying subscriptions for these devices as of March 2023, more than doubling from 29 lakh as of March 2022.
Gross Merchandise Value (GMV), which stood at ₹3.62 lakh crore for Q4 FY 2023, saw an increase of 40% YoY.
Additionally, in Q4FY23, the number of merchant loans disbursed grew 258% YoY for the latest quarter, while the value of merchant loans grew 309% YoY to ₹2,313 crore according to the financial statement of Paytm.
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More than 85% of the value disbursed this quarter was to merchants with a payment device provided by the fintech platform.
Paytm reported that the average ticket size for personal loans is currently at approximately ₹130,000 with an average tenure of 15 months.
For full-year FY23, the company's revenue growth stood at 61% YoY to ₹7,990 crore driven by payments monetization and the growing scale of our loan distribution business.
The company's contribution margin improved from 30% in FY 2022 to 49% in FY 2023, due to improved payments profitability, and growth in the high margin loan distribution business.
FY23 net loss narrowed to ₹1,776.5 crore versus ₹2,396.4 crore in FY22.
As the company steps into FY24, the company sees long-term potential for revenue growth and profitability across payment and lending businesses.
In its statement, Paytm said, "The growth of UPI and other mobile payment methods presents a wealth of untapped opportunities. We are prepared to capitalise on these opportunities by bringing innovative products to our customers."
Since the launch of its UPI Lite platform in February 2023, Paytm has already onboarded 55 lakh customers.
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NPCI's wallet interoperability guidelines are expected to allow Full KYC Paytm Wallet to be universally acceptable on all UPI QRs and online merchants.
Paytm added, "We believe India has potential of at least 10 crore merchants and more than 50 crore payment users in the near future. Considering this large scale of opportunity, and our ability to monetise our customer base, we will continue to invest in consumer marketing and expand merchant-acquiring sales teams. With addition of nearly 9,000 members, our sales team now has more than 28,000 members, and caters to nearly 550 towns and cities."
The company has partnered with large NBFCs and Banks and will continue to focus on the quality of loans distributed through our platform.
Also, the company aims to onboard 3-4 partners in FY24. Currently, it has 7 lending partners.
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