NEW DELHI: India's leading payments and financial services entity Paytm today, June 5, announced its business operating performance for the 2 months ended May 2023.
The average Monthly Transacting Users (MTU) for the two months ending in May 2023 were 9.2 crore, representing a gain of 24% compared to the same period last year. This indicates that consumer interaction on the Paytm Super App is continuing to experience substantial development in its user base.
The QR pioneer says it reached a new milestone with 75 lakh devices deployed, an increase of 4 lakh devices in the month of May, as it solidifies its leadership in offline payments. The company explained that their subscription as a service business model "drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution."
The total merchant Gross Merchandise Value (GMV) processed by the platform for the two months ending in May 2023 totaled Rs 2.65 lakh crore ($32.1 billion), representing a year-over-year rise of 35%. Paytm is experiencing sustained growth in merchant payments volume.
Paytm said, "our focus over the past few quarters has remained on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential."
With the help of prominent lenders, the fintech giant's loan distribution business has continued to expand quickly. For the two months ending in May 2023, disbursements made through the platform increased by 169% year over year to Rs 9,618 crore ($1.1 billion).
85 lakh loans were disbursed throughout the two months, an increase of 54%. Paytm stated that while it continues to work with lenders to stay focused on the quality of the book, it presently has seven sizable lending partners and hopes to add another three to four in FY24.
The company also reported that the previously mentioned system change is now complete and that its lending partner has resumed disbursing merchant loans, with some backlog from April's demand being satisfied in May.
Paytm recorded a 51% YoY increase in income from operations to Rs 2,334 crore in its recently released January-March quarter (Q4FY23) results, led by growth in the payments and loan distribution business.
The company announced operating profit for the second consecutive quarter. EBITDA before ESOP costs, including the full-year UPI incentive, was reported at Rs 234 crore. Paytm met its goal of operating profitability in the preceding quarter, much beyond its September 2023 estimate.
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