Paytm Disburses Loans Worth Rs 5,517 Crore In August, Reports Steady Growth In Business

The average monthly transacting users (MTU) for the company for the quarter to date (for July and August) stood at 9.4 crore, up by 20 per cent on a year-on-year (YoY) basis.

Fintech company Paytm reported sustained growth in it’s payments and loan distribution business in August. The company, via an exchange release on Tuesday, stated that it provided 87 lakh devices to subscribers and distributed loans worth Rs 5,517 crore through the Paytm platform in August 2023. 

Owned by parent company One97 Communications Ltd., Paytm stated it witnessed an increase of 42 lakh devices in the last 12 months and 5 lakh devices in August alone. The company added, “With our subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution.”

The average monthly transacting users (MTU) for the company for the quarter to date (for July and August) stood at 9.4 crore, up by 20 per cent on a year-on-year (YoY) basis, it stated in the release. 

The company’s gross merchandise value for the quarter to date (for July and August), was worth Rs 3 lakh crore, gaining 43 per cent on a YoY basis. The company noted, “We continue to see an increase in GMV of non-UPI instruments like EMI and cards. Growth in payments volumes drives profitability for us, through net payments margin and/or from direct upsell potential.”

Paytm reported a massive jump in it’s loan distribution business, with total loans disbursed through the Paytm platform for quarter to date (for July and August) increasing by 137 per cent on a YoY basis to Rs 10,710 crore. 

The company added, “Over the past several quarters, we have talked about our plans to calibrate growth to further tighten credit quality of loans distributed on our platform. We have been able to successfully demonstrate improving credit quality for Paytm Postpaid.”

The fintech also noted that it is looking at adding more lending partners. It said, “We remain focused on the portfolio performance of our lending partners, and growth may be subdued until the industry outlook improves. High-quality outcomes for our partners enables us to expand our lending partnerships. We currently have 8 lending partners (including for credit card distribution) and we aim to onboard 3-4 partners in FY 2024.”

Paytm informed via it’s release that it will discontinue monthly disclosures of operating performance after September 2023, as stated in it’s earnings presentation for the last quarter of the previous fiscal year, and will continue to provide disclosures on a quarterly basis.