Paytm Q3FY24: Consolidated revenue soars 38% YoY to Rs 2850 cr; losses narrow down to Rs 222 cr

This firm attributed this growth to the festive season's positive impact.

The firm reported a significant reduction in losses, narrowing down to Rs 222 crore from Rs 392 crore in the previous financial year. Quarter-on-quarter comparisons revealed a 13% revenue increase, rising from Rs 2518.6 crore, and a 23% reduction in losses.

Key highlights from the payment business indicate a revenue of Rs 1730 crore, marking a 45% year-on-year growth.

This growth was fuelled by an upswing in gross merchandise value (GMV) and increased subscription revenue.

Paytm attributed the GMV boost in part to the timing of the festive season, with most online sales occurring in Q3 of the current financial year, unlike the previous year when they commenced in Q2.

The net payment margin demonstrated robust improvement, climbing by 63% to reach Rs 748 crore in Q3FY24, year on year.

Payment margins hinge on Paytm's earnings from non-UPI instruments such as post-paid, EMI, cards, and subscription charges related to devices sold to merchants.

As of December 2023, Paytm boasted 1.06 crore merchant subscriptions, witnessing a YoY increase of 49 lakh.

The company deployed 14 lakh devices during the quarter, earning Rs 100-500 per month per device. Paytm's strong performance underscores its resilience and ability to capitalize on market opportunities in the dynamic fintech landscape.

In the December quarter, Paytm disbursed loans worth Rs 15,535 crore, marking a YoY increase of 56%. The total number of unique users availing loans through the Paytm platform increased by 44 lakh over the past year, reaching 1.25 crore.

In a stock exchange filing, the company expressed optimism in the high-ticket loan business, revealing plans to accelerate further by onboarding additional lending partners.

Currently collaborating with two lending partners, Paytm aims to add at least 3-4 more partners by Q1 FY2025.

The Average Monthly Transacting Users (MTU) for Q3FY24 grew by 18% YoY, reaching 10 crore.

Paytm’s marketing services revenue saw a 22% YoY increase to Rs 514 crore in Q3FY24.

In the Marketing Services sector, the company offers merchants a range of services, including Deals, Gift Vouchers, Loyalty programs, and facilitates commerce services. This includes advertising on the Paytm App for various brands and businesses.

Paytm’s board also approved its Rs100 crore investment in Gujarat International Finance Tec-City (GIFT City) to establish a global financial ecosystem.

Leveraging its success in real-time payments, Paytm aims to streamline cross-border remittances with efficient, AI-powered solutions.

Additionally, Paytm will invest in setting up a development center in GIFT City to create a technology backbone for these solutions.