Paytm Reported 89 Percent Growth In The Third Quarter

Paytm reported 89 percent growth in the third quarter. 89 percent jump in Paytm’s revenue, excellent results in the third quarter.

One97 Communications Limited-owned Paytm has shared the results for the third quarter of FY 2022.

During the October-December quarter, the company reported 89 percent growth in its revenue at Rs 1,456 crore.

At the same time, the EBITDA loss (before ESOP expenses) of the company has come down to Rs 393 crore from Rs 488 crore in the corresponding quarter of last year.

Paytm spokesperson said that our business is to offer payments to consumers and merchants and enable them to cross-sell high-margin financial services and commerce.

We serve our customers for Bill Payment, Money Transfer, and Offline Merchant Payment.

The company’s revenue from payment services to consumers grew 60 percent to Rs 406 crore, while revenue from payment services to merchants grew by 117 percent to Rs 586 crore.

Cloud and commerce services revenue also grew 64 percent to Rs 339 crore. Financial services operating on the platform leveraged are expanding rapidly.

A large part of the company’s third-quarter results was driven by an uptick in its financial services. The company disbursed 44 lakh loans (401 percent YoY growth) with a total value of Rs 2,181 crore (366 percent Y-o-Y).

The company’s credit business is spread across three main verticals – Paytm Postpaid (Buy Now, Pay Later), Merchant Loans, and Personal Loans, which have grown rapidly.

The number of postpaid loans disbursed grew by 407 percent year-on-year in the third quarter of FY 2022, while the value of postpaid loans grew by 408 percent year-on-year.

According to a company spokesperson, the number of personal loans disbursed grew by 1,187 percent year-on-year in the third quarter of FY 2022, while the value of personal loans grew by 1,925 percent year-on-year.

We see significant potential for cross-selling, as over 50 percent of personal loans were disbursed to our existing Paytm postpaid users.

The average ticket size ranged between 80,000-90,000 with an average tenure of 12-14 months.

Further, the number of merchant loans disbursed grew by 38 percent year-on-year in the third quarter of FY22, while the value of merchant loans grew 128 percent year-on-year.

More than 25 percent of loans were disbursed to new borrowers. The average ticket size has been increasing steadily, which now stands at Rs 120,000-140,000 with an average tenure of 12-14 months.

The company has seen a positive change in its contribution or contribution profit between FY 2021 and FY 2022.

The contribution profit of Rs 454 crore for the third quarter FY 2022 represents a 560 percent year-on-year growth. The company’s expenses as a percentage of revenue are also declining rapidly.