Paytm Disburses Loans Worth Rs 14,845 Crore in Q1 FY24, Registers Impressive Growth in Payment Volume
- ByStartupStory | July 5, 2023
Paytm, owned by One97 Communications, has announced its robust performance in the first quarter of the financial year ending June 2023 (Q1, FY24), revealing significant growth in loan disbursals and merchant payment volume. The company disbursed a total of 1.28 crore loans amounting to Rs 14,845 crore during this period, marking a substantial year-on-year increase of 51% in terms of volume and 167% in value.
The surge in loan distribution is attributed to the higher disbursal in May, which included pent-up demand for merchant loans from April due to a temporary interruption caused by a partner’s system upgrade. Currently, Paytm collaborates with seven lending partners and plans to onboard three to four additional lenders during the ongoing financial year.
Paytm’s merchant payment volume (GMV) for the June quarter witnessed an impressive 37% year-on-year surge, reaching Rs 4.05 lakh crore. Additionally, the platform recorded an average of 9.2 crore users engaged with the app on a monthly basis during the three-month period, reflecting a growth rate of 23% compared to the previous year.
Highlighting their focus on profitability, Paytm emphasized generating payment volumes through net payments margin or direct upsell potential. This strategic approach ensures sustained growth while benefiting both the company and its users.
The company’s efforts in expanding its offline payment ecosystem have also yielded positive results. Paytm reported that 79 lakh merchants are now subscribing to its payment devices, such as Soundbox and POS machines, representing a notable increase of 11 lakh devices during the quarter. The subscription-as-a-service model has been instrumental in driving revenue growth, boosting payment volumes, and further expanding the reach for merchant loan distribution.
The recent developments have attracted the attention of global brokerage firms. BofA Securities raised its target price for Paytm shares from Rs 885 to Rs 1,020, citing the momentum in high-margin lending and the success of the Soundbox business. Conversely, Macquarie downgraded the stock to a neutral rating but maintained a target price of Rs 800. Despite a year-to-date rally of over 60% in its share price, Paytm is still below its IPO price of Rs 2,150.
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