Paytm on path to profit, says CEO, as loan disbursal grows 387% in Oct
The value of Paytm’s loan disbursals grew 387% year-on-year (YoY) to Rs 3,056 crore in October, while the number of loans disbursed grew 161% YoY to 3.4 million, the digital payments firm said in a filing with India’s stock exchanges on November 14. Paytm is on the path to profitability and free cash flow, chief executive Vijay Shekhar Sharma said in a letter to shareholders.
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“Due to the huge demand for lending in our country, our low penetration and the compounding nature of our lending journey, we are extremely optimistic about the prospects of our lending business,” he added.
The firm said it continued to see heightened consumer engagement on the Paytm app for the company’s “comprehensive” payment offerings. “We continue to drive user engagement, with the average MTU (monthly transacting users) for the month of October 2022 at 84 million, registering a growth of 33% YoY,” Paytm said.
The company also said it clocked 42% YoY growth to $14 billion on total merchant GMV (gross merchandise value) processed through Paytm in October. It said this was “partly due to the festive season”.
The digital payments firm
reported a 76% jump in second-quarter revenue, driven by a surge in loan growth.
On November 7, Paytm’s parent firm One 97 Communications said revenue rose to Rs 1,914 crore ($233.81 million) in the July-September quarter, from Rs 1,086 crore a year earlier.
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The company’s consolidated net loss widened to Rs 571 crore from Rs 473 crore in the same period last year as expenses related to employee benefits and payment processing charges surged.
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