Paytm says it continues to see growth and upsell opportunities in the loan disbursal business
The value of loans disbursed in the September 2022 quarter grew 482 per cent y-o-y to Rs 7,313 crore ($894 million) and the number of loans disbursed also jumped 224 per cent y-o-y to 9.2 million. One97 Communications, the parent company of Paytm, on Monday said it continues to see growth and upsell opportunities in the loan disbursal business, while it works with its partners to remain focused on the quality of the book.
“Our loan distribution business (in partnership with top lenders) continues to witness accelerated growth with disbursements through our platform now at an annualised run rate of Rs 34,000 crore in the month of September,” One97 Communications said in a BSE filing on Monday.
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The company also said it continues to strengthen its leadership in offline payments, with deployment of 4.8 million devices at merchant stores across the country. With the subscription-as-a-service model, the strong adoption of devices drives higher payment volumes, and subscription revenues, while increasing the funnel for Paytm’s merchant loan distribution.
It deployed a total of 4.8 million offline payment devices (point of Sale terminals plus Soundbox) at merchant stores across the country in the reporting quarter, up from 1.3 million in Q2 FY22.
“The paytm super app continues to see heightened consumer engagement for the company’s comprehensive payment offerings. We continue to drive user engagement, with the average MTU for the quarter ended September 2022 at 79.7 million, registering a growth of 39 per cent y-o-y,” Paytm added.
The total merchant GMV (gross merchadise value) processed through Paytm for the quarter ended September 2022 stood at Rs 3.18 lakh crore ($39 billion), marking a y-o-y growth of 63 per cent. It captures the value of total payments made to merchants through transactions on its app, payment instruments or through payment solutions, over a period. It excludes any consumer-to-consumer payment services such as money transfers.
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During the June 2022 quarter, digital financial services firm One97 Communications reported a consolidated loss widened to Rs 644.4 crore. The company had recorded a net loss of Rs 380.2 crore a year ago. Paytm said its contribution profit, which excludes taxes and marketing expenses but includes promotional incentives, grew over three-fold to Rs 726 crore in June 2022 quarter from Rs 245 crore in the year-ago period.
