Paytm Revenue Soars 38% YoY To Rs 2,850 Cr, PAT Improves By Rs 170 Cr YoY

Paytm has reported revenue of Rs 2,850 crore, registering growth of 38 per cent YoY, driven by accelerated GMV growth, higher device addition, and growth of financial services business

Paytm, India’s leading payments and financial services company and the pioneer of QR and mobile payments, has announced its Q3FY24 results on Friday. The company has reported revenue of Rs 2,850 crore, registering growth of 38 per cent YoY, driven by accelerated GMV growth, higher device addition, and growth of financial services business.

On the back of growth and operating leverage, EBITDA before ESOP increased by Rs 188 crore YoY to Rs 219 crore in the quarter ended December 2023, compared to Rs 31 crore a year ago. The contribution profit of the fintech firm jumped 45 per cent YoY to Rs 1,520 crore, while the company’s PAT increased by Rs 170 crore YoY to (Rs 222 crore).

The payment business of the fintech firm continues to scale, led by increase in GMV and higher subscription revenue. In Q3FY24, payments revenue grew by 45 per cent YoY to Rs 1,730 crore. There were no UPI incentives booked during the quarter.

Continuing to be a leading player in merchant acquiring network, the company has informed that its merchant subscriber network has crossed 1 crore benchmark (1.06 crore), increasing 49 Lakh YoY and 14 Lakh for the quarter.

“We continue to see strong demand from merchants for our mobile payment acceptance products due to innovative features, superior quality, and strong distribution and service network,” Paytm said in its Q3FY24 results.

The Average Monthly Transacting Users (MTU) for Q3FY24 grew by 18 per cent YoY to 10 crore. Revenue from financial services and others soared 36 per cent YoY to Rs 607 crore. While the value of loans distributed through the company’s platform increased to Rs 15,535 crore, growth of 56 per cent YoY. Talking on the high-ticket loan the company said, “We are seeing good ramp-up in the high-ticket loan segment with a distribution of Rs 490 crore in the quarter. With more than 2 crore whitelist customers, we expect acceleration in this business as we increase lending partners from 2 currently to at least 5-6 partners by Q1 FY 2025.”

Paytm is also accelerating the adoption of AI as it allows the deployment of more features at a faster speed within the core tech and product functions and expects that its AI first approach will allow it to drive operating leverage across various functions, including business and operations. The marketing services revenue grew by 22 per cent YoY to Rs 514 crore.

GMV for ticketing, deals and gift vouchers etc. (Commerce business) grew 48 per cent YoY to Rs 3,392 crore, driven by increase in market share in travel and higher volumes in events business.

In Payments, the company’s multi-device led strategy will further strengthen acquiring leadership. It will also focus on new use cases like Credit on UPI, Autopay etc. to lead monetizable incremental customer acquisition. In Marketing Services, the company is offering Deal, Gift Voucher, Loyalty and enabling commerce services to merchants along with advertising on Paytm App for various brands and businesses. Under financial services, the company is expanding high-ticket loans by focusing on adding new lending partners. It is also scaling embedded insurance and merchant insurance offerings and cross-selling equity trading to Paytm consumer base.