Fintech Pioneer Paytm's EBITDA Skyrockets To Rs 153 Cr, Driven By Revenue Of Rs 2,519 Cr

Paytm's loan distribution continues to scale with Rs 16,211 crore of loan disbursement, up 122 per cent YoY

One97 Communications, the parent company of payments major Paytm, on Friday reported an increase of 32 per cent year-on-year (YoY) in its revenue from operations at Rs 2,519 crore in Q2FY24. A rise in GMV, merchant subscription revenues, and growth of loans distributed through its platform have increased the revenues, Paytm said. The EBITDA before ESOP cost has improved to Rs 153 crore as compared to Rs 84 crore in Q1FY24.

Driven by increase in contribution margin and operating leverage, Paytm's EBITDA before ESOP margin also improved to 6 per cent which is an expansion of 15 per cent points YoY. Payments revenue increased 28 per cent YoY to Rs 1,524 crore, while the payments profitability improved with net payment margin expanding 60 per cent YoY to Rs 707 crore. The fintech giant’s loss reduced 49 per cent YoY at Rs 292 crore from Rs 571 crore, indicating a good overall performances.

Offering tremendous upsell and lifecycle benefits, the number of loans distributed through Paytm’s platform grew to 1.32 crore, growth of 44 per cent YoY, while the value of loans distributed grew to Rs 16,211 crore, surging 122 per cent YoY. Total number of unique borrowers who have taken a loan through its platform has increased by 51 Lakh over the last one year to 1.18 crore.

Paytm’s Commerce & Cloud revenue grew by 12 per cent YoY to Rs 423 crore in Q2FY24. Paytm’s contribution profit of Rs 1,426 crore represents a growth of 69 per cent YoY, while the contribution margin improved to 57 per cent from 44 per cent a year ago. The company's merchant payments volume (GMV) grew 41 per cent YoY to Rs 4.50 lakh crore in Q2FY24. As the company expands its credit business, its revenue for financial services and others grew 64 per cent YoY to Rs 571 crore.

Paytm also continues to be a leader in in-store payments as the merchant base of the company has grown to 3.8 crore while subscriber base has increased to 92 Lakh as of September 2023. User engagement on the platform also grew with average Monthly Transacting Users (MTU) of 9.5 crore, a jump of 19 per cent YoY, indicating that Paytm app remains a preferred choice for customers.