– On track to achieve operating profitability by Sep 2023 quarter
– Contribution Profit grows 197% Y-o-Y to ₹726 Cr
– Contribution margin increases to over 43% Y-o-Y from 27%
– Device deployment increases to 3.8 million
– Loan disbursal value rises 779% YoY to ₹5,554 Cr
Digital financial services giant One97 Communications that operates the brand Paytm on Friday reported its Q1FY23 results, where it saw a massive jump in revenue from operations driven by strong monetization in payments, device subscriptions and accelerated adoption of high-margin businesses such as lending.
In addition to 89% 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% Y-o-Y to Rs 726 Cr, leading to an increase in contribution margin to 43% of revenues in comparison to 35% in Q4FY22.
Paytm’s payments services revenue grew by 69% Y-o-Y (3% 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% Y-o-Y to 74.8 million during the quarter, while the merchant base expanded 30% Y-o-Y to 28.3 million. This has resulted in a 101% Y-o-Y jump in Gross Merchandise Value (GMV), which stood at ₹3 lakh Cr 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% 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% Y-o-Y and 30% Q-o-Q.
The value of the loans disbursed stood at ₹5,554 Cr, marking a growth 779% Y-o-Y of 56% Q-o-Q. Moreover, the company has now reached an annualised run rate of approximately ₹24,000 Cr of loan disbursements through its platform, with higher demand for Paytm Postpaid (BNPL), personal loans and merchant loans.
