One97 Communications, the parent company of digital payments company Paytm, posted its earnings report for the second quarter ending September 30 on Saturday, in which it reported a net loss increased by 8.4 per cent to ₹474 crore corresponding to ₹437 crore in the same quarter last year.
The revenue from operations jumped 64 percent year on year (YoY) to Rs 1,090 crore in the reporting quarter. This increase came in due to 52 percent growth in non-UPI payment volumes (GMV) and more than 3x growth in financial services, the company said in a regulatory filing.
“The growth of non-UPI GMV has driven continued payments revenue growth, and our UPI-led payment volume growth is translating to a significant ramp-up of our financial services offering. We are driving digital payments and financial services penetration and widespread adoption across India. Paytm has seen a strong second quarter of FY22, which is a testimony to the strong two-sided ecosystem of consumers and merchants that we have built. We have maintained the growth momentum in our payments services business, expanded our financial services business aggressively and are on our way to pre-COVID volumes for Commerce and Cloud services,” the company said in a statement.
Financial services also saw strong growth, the statement added.
With a cash equivalent and investable balance of 110 billion dollars, the corporation declared it was “fully capitalised,” including through an initial public offering (IPO).
“Paytm has seen a strong second quarter of FY22, which is a testimony to the strong two-sided ecosystem of consumers and merchants that we have built,” the statement added.
On a segment level, payment and financial services revenue attracted Rs 842.6 crore during the quarter compared to Rs 497.8 crore in a year-ago period, up by 69 percent. The cloud and commerce services revenue stood at Rs 243.8 crore, up 47 percent against Rs 166 crore revenue YoY.
The total direct expenses jumped by 32 percent to Rs 825.7 crore from Rs 626 crore YoY.
Paytm, backed by Jack Ma’s Ant Group and Japan’s SoftBank Group Corp, raised $2.5 billion through its IPO this month, but made a botched debut on the Indian bourses last week.