Paytm Q3 loss narrows to Rs 221 crore, revenue surges 38% YoY

The number of merchants subscribing to Paytm’s payment devices reached 1.06 crore as of December 2023, reflecting a year-on-year increase of 49 lakh.

Paytm achieved an impressive 38% year-on-year growth in its revenue, coming in at ₹2,850 crore. The loss also further narrowed sequentially to Rs 221 crore against Rs 291.7 crore in the previous quarter.

The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) before ESOP (Employee Stock Ownership Plan) exhibited substantial improvement, surging ₹188 crore year-on-year to ₹219 crore. Benefiting from the expansion of net payments margin and the financial services business, Paytm’s contribution profit soared by 45% year-on-year, totaling ₹1,520 crore.

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The number of merchants subscribing to Paytm’s payment devices reached 1.06 crore as of December 2023, reflecting a year-on-year increase of 49 lakh.

The payments business experienced significant growth, with revenue rising by 45% year-on-year to ₹1,730 crore, and the net payment margin witnessing a 63% year-on-year increase to ₹748 crore. Merchant payments volume (GMV) grew by 47% year-on-year, reaching ₹5.10 lakh crore.

Revenue from financial services and other segments climbed by 36% year-on-year to ₹607 crore, driven by personal loans, merchant loans distribution, and increased revenue from the insurance broking business.

In the Payments sector, Paytm is focused on strengthening its acquiring leadership through a multi-device strategy. Additionally, the company plans to introduce new use cases, including Credit on UPI and Autopay, to drive incremental customer acquisition. In the financial services segment, there is an emphasis on expanding high-ticket loans through new lending partners. Simultaneously, the company is extending its offerings in embedded insurance and merchant insurance, while actively cross-selling equity trading to the Paytm consumer base.

During the December quarter, Paytm disbursed loans worth ₹15,535 crore, marking a year-on-year increase of 56%. The total number of unique users availing loans through the Paytm platform increased by 44 lakh over the past year, reaching 1.25 crore.

Paytm expressed optimism in the high-ticket loan business and revealed plans to accelerate further by onboarding additional lending partners. The Average Monthly Transacting Users (MTU) for Q3FY24 grew by 18% year-on-year, reaching 10 crore.

Paytm’s marketing services revenue witnessed a 22% year-on-year increase to ₹514 crore in Q3FY24. In the Marketing Services sector, the company offers merchants a range of services, including Deals, Gift Vouchers, Loyalty programs, and facilitates commerce services. This includes advertising on the Paytm App for various brands and businesses.

Additionally, Paytm’s board approved a ₹100 crore investment in Gujarat International Finance Tec-City (GIFT City) to establish a global financial ecosystem. Leveraging its success in real-time payments, Paytm aims to streamline cross-border remittances with efficient, AI-powered solutions. Furthermore, Paytm will invest in setting up a development center in GIFT City to create a technology backbone for these solutions.