The company said that it witnessed a continued expansion in its customer base.
It also reported a 137% YoY jump in its loan distribution business where the payment platform disbursed loans worth Rs 10,710 crore in July and August. The loan amount disbursed in August stood at Rs 5,517 crore. In terms of numbers, 88 lakh loans were disbursed in the two months of the ongoing quarter, up 47% YoY, Paytm said.
Paytm shares gained nearly 2% to the day’s high of Rs 872.50 on the NSE in the opening trade.
The payment monetization during this period continued with the number of merchants paying subscriptions for payment devices at 87 lakh as of August 2023, an increase of 42 lakh devices YoY. The merchant payment volumes (GMV) for the quarter to date stood at Rs 3 lakh crore ($36.3 billion), which was a 43% YoY growth.
On the outlook of its loan business, the company said, “We remain focused on the portfolio performance of our lending partners, and growth may be subdued until the industry outlook improves. We currently have 8 lending partners including for credit card distribution and we aim to onboard 3-4 partners in FY 2024”.
Over the past several quarters, we have talked about our plans to calibrate growth to further tighten the credit quality of loans distributed on our platform. We have been able to successfully demonstrate improving credit quality for Paytm Postpaid, where the ECL [expected credit loss] has reduced to a range of 0.65% – 0.85% from a range of 0.75% – 1.00% in Q4 FY 2023,” the company statement said further.The quarterly updates come on the back of Founder and Chief Executive Officer (CEO) Vijay Shekhar Sharma becoming the company’s significant beneficial owner (SBO) following the reduction in the shareholding of AntFin from an earlier 23.79% to 9.90%. Sharma holds a 19.42% stake in the Paytm operator. The founder is the only SBO of the company now, consequent to the change of shareholding.
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