By Paytm, India’s leading mobile payments and financial services distribution company, has reported robust financial results for the October-December quarter of FY24, demonstrating significant growth across various segments.
Revenue Growth and Financial Performance
- Revenue Surge: Paytm recorded a remarkable 38% year-on-year (YoY) growth in revenue for Q3FY24, reaching Rs 2,850 crore.
- EBITDA Improvement: The company’s EBITDA before ESOP witnessed a noteworthy improvement of Rs 188 crore YoY, totaling Rs 219 crore.
- Contribution Profit Increase: Led by growth in net payments margin and financial services business, Paytm’s contribution profit surged by 45% YoY to Rs 1,520 crore.
- Profit After Tax (PAT): Paytm’s profit after tax (PAT) saw a significant improvement, rising by Rs 170 crore YoY to Rs 222 crore in Q3FY24.
Performance Across Business Segments
- Payments Business: Revenue from the payments business witnessed a robust growth of 45% YoY, amounting to Rs 1,730 crore. The net payment margin also rose by 63% YoY to Rs 748 crore. Paytm’s merchant payments volume (GMV) experienced a substantial growth of 47% YoY, reaching Rs 5.10 lakh crore.
- Financial Services: Revenue from financial services and other segments increased by 36% YoY to Rs 607 crore, driven by a high proportion of personal loans and merchant loans distribution. The total number of unique users who availed loans through Paytm platform increased by 44 lakh over the past year, totaling 1.25 crore.
Future Strategies and Investments
- High-Ticket Loan Business: Paytm is focusing on expanding its high-ticket loan business, targeting over 20 million users who are already whitelisted. The company distributed USD 490 crore of loans in Q3 FY24 and plans to accelerate further by onboarding more lending partners.
- Payments Sector Leadership: Paytm aims to strengthen its acquiring leadership through a multi-device strategy and explore new use cases such as Credit on UPI and Autopay to drive incremental customer acquisition.
- Expansion of Financial Services: In the financial services segment, Paytm is diversifying its offerings by expanding embedded insurance and merchant insurance services, along with cross-selling equity trading to its consumer base.
Technological Advancements and Investments
- AI Adoption: Paytm is expediting the adoption of Artificial Intelligence (AI) to deploy features rapidly within its core tech and product functions.
- Investments: The company’s board has approved an investment of Rs 100 crore in GIFT City for the development of an AI-driven cross-border remittance solution and to establish an innovation-focused development center. Additionally, Paytm has entered a joint development agreement with ACE builders to set up a campus in Noida.
Conclusion
With strong revenue growth, strategic investments, and a focus on expanding its product offerings and technological capabilities, Paytm continues to solidify its position as a leading player in India’s digital payments and financial services landscape.
