The parent organization of Indian mobile payment company–Paytm–One 97 Communications on Friday reported a consolidated loss widening 69 percent to Rs 645.4 crore for the quarter ended June 2022, from a loss of Rs 382 crore registered in the corresponding quarter last year.
Consolidated revenue for the quarter under review was Rs 1,679.6 crore, up 89 percent from Rs 891 crore reported last year. EBITDA loss before employee stock ownership plan (ESOP) costs stood at Rs 275 crore, up Rs 57 crore from last fiscal’s same quarter. The contribution of margins to revenues grew to 43 percent of revenues as against 35 percent logged in Q4 FY22.
“We are confident that with continued revenue growth, an increasing mix of higher margin businesses such as loan distribution, and better operating leverage, we will reach operating profitability (EBITDA before ESOP cost) by September 2023,” the company said.
Operations: Paytm in July saw its total merchant gross merchandise value (GMV) processed via its platform growing 101% in the quarter ended June and settling at Rs 2.96 lakh crore.
In the lending business, the company reported a growth of 492 percent YoY with a total of 8.5 million loan disbursals during the quarter under review. The value of loans disbursed came in at Rs 5,554 crore during the quarter, up 779 percent YoY.
Disbursal of Paytm Postpaid loans jumped 486 percent YoY. Value of Paytm Postpaid loans disbursed upped 656 percent to Rs 3,383 crore as against Rs 447 crore a year ago.
“We are also seeing increases in average ticket size due to the scale-up of the personal loans business in particular,” Paytm said.
Consumer engagement was at a record high during the quarter on Paytm Super-App with average monthly transacting users (MTU) coming at 74.8 million, a growth of 49 percent YoY.
Segment-wise Revenue Generation:
Revenue from payments services to merchants grew 67 percent YoY to Rs 557 crore.
Revenue from payments made by consumers on the Paytm app rose 73 percent YoY to Rs 519 crore.
Revenue from financial services, primarily from loan distribution, stock broking, and investment platform– Paytm Money, grew 393 percent YoY to Rs 271 crore.
Commerce and cloud services attracted Rs 331 crore in revenues, up 64 percent YoY.
The consolidated revenue from operations rose 89 percent to Rs 1,680 crore in QFY23 from Rs 891 crore in the same quarter last year.
“Earlier this year, we had shared that we would achieve operating profitability by September 2023, driven by better monetization, as well as moderating growth in costs. The first quarter of the financial year 2023 results exhibit our strategy is well-in-place, with focused improvement on unit economics, better expense management, and an increasing mix of higher margin businesses (such as financial services & commerce) steering us on the path to profitability,” said the company.