Paytm records 148% YoY surge in loan disbursals to INR 4,115 Cr in April, but experiences 8% MoM decline
- ByStartupStory | May 8, 2023
Paytm, a leading fintech company, announced on May 6 that it had disbursed 41 lakh loans worth INR 4,115 Cr ($503 Mn) in April, marking a YoY increase of 56% and 148%, respectively. However, despite the number of loans disbursed remaining constant, the value of loans disbursed declined by almost 8% from INR 4,468 Cr in March. According to Paytm’s exchange filing regarding its operating performance last month, it experienced a temporary setback in the merchant loans vertical, despite continued growth in the distribution of postpaid, personal, and merchant loans.
Paytm reported that it had to halt the distribution of merchant loans through its platform for one of its partners temporarily due to a technology systems upgrade by the latter. According to a filing, while new loan distribution remained largely unaffected due to multiple partners, upselling to existing merchants of that partner was impacted. However, the system upgrade has been completed, and the partner has resumed disbursing merchant loans. Nonetheless, the slowdown in April is expected to have an impact on merchant loan growth in Q1 FY24. Paytm has seven lending partners currently and plans to add three to four more in the current fiscal year.
Paytm reported a 25% YoY increase in its average monthly transacting users (MTU) to 9.2 Cr in April due to the continuous expansion of its customer base. In addition, the fintech company stated that the number of merchants paying for its payment devices like Soundbox and POS machines increased by 3 Lakh to 71 Lakh at the end of April.
A year ago, this number was 32 Lakh. Paytm’s subscription as a service model, according to the company, drives subscription revenues and higher payment volumes, while expanding the funnel for its merchant loan distribution.
Paytm has reported a significant YoY growth in its operating revenue, with a 51% increase to INR 2,334.5 Cr in Q4 FY23, driven by the strong performance of its payment services and loan distribution verticals. In the same quarter, the fintech giant disbursed 1.19 Cr loans amounting to INR 12,554 Cr via its platform.
Paytm’s revenue from payment services stood at INR 1,334 Cr, while financial services and other related businesses contributed INR 475 Cr to the company’s operating revenue in Q4 FY23, which led to a 51% YoY increase in its operating revenue to INR 2,334.5 Cr.
During the quarter, the company disbursed 1.19 Cr loans worth INR 12,554 Cr on its platform. Furthermore, Paytm’s net loss in Q4 FY23 narrowed down by 78% YoY to INR 167.5 Cr. The company’s shares ended Friday’s session 2.7% higher at INR 689.45 on the BSE. The financial results were declared by Paytm after market hours.
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