One97 Communications, which owns fintech firm Paytm, reported on Wednesday a 167 per cent year-on-year (YoY) growth in the value of loan disbursements for the quarter-to-date period.
Paytm distributed loans worth Rs 14,845 crore in Q1 FY24, compared to Rs 5,554 crore in Q1 FY23.
The company said it distributed 12.8 million loans in Q1 FY24 compared to 8.5 million in the same period the previous financial year, marking 51 per cent year-on-year growth.
“Our focus remains on the asset quality by continuously reviewing with our partners cohort data and tightening credit policy wherever needed proactively. This reflects in the growth of value of loans distributed in the quarter,” said Paytm in an operating performance update.
It processed more than Rs 4.05 trillion in gross merchandise value (GMV) in Q1 FY24 compared to Rs 2.96 trillion in Q1 FY23, marking a 37 per cent YoY rise.
The company had 92 million monthly transacting users (MTUs) in Q1 FY24 compared to 75 million in Q1 FY23, marking a 23 per cent rise to expand its consumer base.
“Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct up-sell potential,” said the company.
Paytm has 7.9 million merchants who subscribe for its payment devices, such as sound boxes. The company recorded a 109 per cent YoY growth in total subscription merchants (payments devices) from 3.8 million in June 2022.
“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,” it said.
Paytm is expected to add another 15 million customers in its sound box segment in the next two or three years, according to a Bank of America (BofA) Securities report. Competitors such as BharatPe and PhonePe and banks such as HDFC, SBI and IndusInd are focused on this segment, too.
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