Digital financial services giant One97 Communications, which operates the brand Paytm, on Friday reported its Q1FY23 results, where it saw a massive jump in revenue from operations driven by strong monetisation in payments, device subscriptions and accelerated adoption of high-margin businesses such as lending.
In addition to 89 percent Y-o-Y revenue growth to Rs 1,680 crore, the company also saw EBITDA (before ESOP) reduce to Rs 275 crore, an improvement of Rs 93 crore Q-o-Q. As a result, the company’s contribution profit grew 197 percent Y-o-Y to Rs 726 crore, leading to an increase in contribution margin to 43 percent of revenues in comparison to 35 percent in Q4FY22.
Our Q1 FY 2023 financial results are out.
Strong performance in revenue growth and sustained improvement in contribution margin led to ₹93 crore operating EBITDA improvement QoQ.
— Paytm (@Paytm) August 5, 2022
Paytm’s payments services revenue grew by 69 percent Y-o-Y (3 percent Q-o-Q), supported by rapid growth in user engagement, merchant base, use cases on the Paytm super app and subscription revenue from payment devices.
The company’s user engagement, measured by monthly transacting users (MTU), grew 49 percent Y-o-Y to 74.8 million during the quarter, while the merchant base expanded 30 percent Y-o-Y to 28.3 million. This has resulted in a 101 percent Y-o-Y jump in Gross Merchandise Value (GMV), which stood at Rs 2.96 lakh crore during the quarter.
Paytm continues to dominate the offline payments segment, with a total of 3.8 million total devices deployed, of which 2.8 million were added in the past 12 months and 0.9 million during the quarter.
The company’s revenue from financial services grew 393 percent Y-o-Y during the quarter, led by massive growth in Paytm’s loan distribution business. During the quarter, Paytm disbursed 8.5 million loans, representing a growth of 492 percent Y-o-Y and 30 percent Q-o-Q.
The value of the loans disbursed stood at Rs 5,554 crore, marking a growth of 779 percent Y-o-Y or 56 percent Q-o-Q. Moreover, the company has now reached an annualised run rate of approximately Rs 24,000 crore of loan disbursements through its platform, with higher demand for Paytm Postpaid (BNPL), personal loans and merchant loans.
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