Vijay Shekhar Sharma-led fintech giant Paytm's parent One97 Communications has reported a 38% year-over-year increase in revenue, totaling Rs 2,850.5 crore in the third quarter of the fiscal year 2023-24.
Paytm said the growth was primarily driven by a significant rise in the payments business, which saw a 45% increase in revenue, reaching Rs 1,730 crore.
Additionally, revenue from financial services and other segments climbed by 36% to Rs 607 crore, demonstrating the company's expanding presence in the digital payments and financial services sectors in India.
What about losses?
While Paytm did witness a notable rise in revenue, it also reported a considerable reduction in losses, narrowing down to Rs 221.7 crore from Rs 392.1 crore in the same period last year.
The loss reduction comes on the back of the company's strategic focus on operational efficiency and market expansion. Paytm also reported an increase in its EBITDA before ESOP expenses by Rs 188 crore year-over-year, amounting to Rs 219 crore.
Despite not posting a net profit since going public in November 2021, the company remains confident towards achieving profitability, a primary goal for elite Indian startups.
Merchant growth and loan distribution
The number of merchants subscribing to Paytm's payment devices reached 1.06 crore as of December 2023, marking a significant year-over-year increase of 49 Lakh.
The company's loan distribution witnessed a 56% year-over-year increase, with loans worth Rs 15,535 crore being disbursed. The growth underscores Paytm's expanding role in the financial services sector, with a total of 1.25 crore unique users availing loans through the platform, it said.
Paytm's investment in GIFT City
Earlier this month, Paytm's board approved an investment of Rs 100 crore in Gujarat International Finance Tec-City (GIFT City) to establish a global financial ecosystem.
The company had said the investment is part of its strategy to leverage its success in real-time payments and streamline cross-border remittances with AI-powered solutions. It is also setting up a development center in GIFT City to create a technology backbone for these solutions.
Looking forward, Paytm plans to introduce new use cases like Credit on UPI and Autopay to stimulate customer acquisition. The company aims to broaden high-ticket loans by partnering with new lending partners and extending its offerings in embedded insurance and merchant insurance.
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