Paytm parent One97 Communications’ FY24 revenue from operations surged 24.8% to Rs 9,978 crore from Rs 7,990 crore in FY23. However, Q4 revenues dipped 2.8% year over year to Rs 2,267 crore from Rs 2,334 in Q4 FY23.
Loss for FY24 narrowed by 20% to Rs 1,422 crore from Rs 1,776 crore in FY23, while Q4 loss soared over threefold to Rs 550 crore.
During FY24, the company continued to build on its growth momentum across core payments and financial services distribution business, Paytm said in a statement. GMV growth, device addition, and growth
in financial services contributed to the revenue push, it added.
The company had 1.07 crore merchants paying for device subscriptions as of March 2024, up 58% from 68 lakh as of March 2023.
Overall loss for FY24 fell on the back of improved growth and increased operational profitability, said the company.
Expenses rose 15% to Rs 11,644 crore in FY24 from Rs 10,130 crore in FY23, driven by higher payment processing charges and employee benefits expenses, according to the consolidated financial statements.
However, in Q4 FY23, expenses reduced 16.3% to Rs 2,691 crore, down from Rs 3,216 crore in the previous quarter, primarily due to a decrease in payment processing charges.
On January 31, 2024, the RBI clamped down on Paytm Payments Bank Ltd (PPBL), an associate of One97 Communications, limiting it to only customer balance withdrawals.
Consequently, One97 Communications ceased major business activities with PPBL, simplified its shareholder agreement, and withdrew its nominee director from PPBL’s board.
Due to regulatory actions and lack of audited financials, One97 Communications recorded an impairment provision of Rs 227 crore, representing the carrying value of its investment in PPBL. This reflects significant business impact and future uncertainties for PPBL, as per Paytm’s financial statements.
In FY25, Paytm aims to improve profitability through embedded insurance and wealth product distribution.
Rakesh Singh, the former CEO of wealth management firm Fisdom’s broking arm, recently took over as the head of Paytm’s wealth division.
Paytm says it is focused on driving credit growth through a distribution-only disbursement model, owing to a wider interest from large banks and non-banks, bigger total addressable market, simpler tech integration, and clearer regulations. Lending partners will manage collections, and Paytm has started conducting pilots with a few partner banks, the company said.
Edited by Swetha Kannan
