Paytm Records 61% Revenue Growth and 26% Decrease in Losses in FY23
- ByStartupStory | May 6, 2023
Paytm, the payments aggregator, has moved closer to achieving its target of $1 billion in annual turnover as it reported a 61% YoY increase in revenue for FY23. The company generated revenue of Rs 7,990 crore while reducing its losses by 26% to Rs 1,776 crore compared to the previous fiscal year.
Paytm’s revenue increased by 51% to Rs 2,334 crore in Q4 FY23 from the same quarter of the previous fiscal year, and its net payment margin saw a 158% YoY improvement to Rs 687 crore, according to the company’s latest financial results.
Paytm surpassed its target of achieving operational profitability by September 2024 by almost 17 months. The company attributes this to better cost management, higher operating leverage, and an increased pace of monetization. In Q4 FY23, Paytm improved its EBITDA before ESOP by Rs 602 crore compared to the same quarter in the previous fiscal year, which brings the total to Rs 176 crore for FY23.
According to a statement from Paytm, the company achieved operational profitability (EBITDA before ESOP) during the second half of 2023. The company believes it can continue its growth momentum and further improve profitability. Paytm stated that it has invested significantly in sales manpower, technology platform improvements, and marketing expenses, which it believes will help it sustain its momentum.
In the previous month, Motilal Oswal analysts shared with YourStory that they anticipate Paytm’s pre-tax earnings to achieve a break-even point by FY25. They also projected that Paytm would benefit from the increasing popularity of mobile payments, which are expected to expand by around five times to $3 trillion by 2026.
According to a study by Bain & Co titled ‘The Future of India Retail Payments’, the annualized transaction value of the Unified Payments Interface (UPI) has reached $1.7 trillion, with a merchant transaction value of $380 billion in FY23. This is nearly twice the amount transacted via credit cards. The report further states that non-cash transactions over UPI are projected to grow by 50% to reach around $1 trillion by 2026.
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