Paytm Q2 loss increases to Rs. 571.5 crore as operating revenue increases by 76%

On a sequential basis, One 97 Communications’ loss for the quarter ending in September FY23 decreased from the loss of Rs 645.4 crore reported in Q1FY23.

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In comparison to the same period last year, One 97 Communications, the business that operates Paytm, a mobile payments and financial services provider, reported a consolidated loss of Rs 571.5 crore for the quarter that ended in September FY23. The loss decreased from Rs 645.4 crore in Q1FY23, though.

In comparison to the same period in the previous fiscal, the combined operating revenue for the quarter of Rs 1,914 crore climbed by 76.2 percent. The top line had a 14% sequential growth.

Paytm stated in its BSE filing on November 7 that the improvement in the top line was caused by an increase in merchant subscription revenues, growth in bill payments due to an increase in MTU (monthly transaction users), and growth in loan disbursements through the platform.

The company also stated that “our payments business reported 56% YoY revenue growth and net payments margin growth of over 400%, revenue in payment services to consumers business was Rs 549 crore, increasing 55% YoY, while that in Payment services to merchants was Rs 624 crore, increasing 56% YoY.”

Payments services revenue was further helped by improved GMV from online merchants in the payment gateway business and continued rise in subscription (and MDR) revenues from offline shops, driven by the ramp-up of devices business.

According to One 97 Communications, sourcing and collecting revenues in the loan distribution business drove a 293 percent YoY (up 29 percent QoQ) increase in the financial services and other business’ income, which made up 18% of the top line at Rs 349 crore.

According to the statement, a total of 9.2 million loans of Rs 7,313 crore were disbursed in collaboration with lending partners during the quarter, representing an increase of 482 percent YoY and 32 percent QoQ.

With disbursements in the loan distribution business at a yearly run-rate of over Rs 34,000 crore, Paytm ended Q2FY23.