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One 97 Communications Ltd, the parent of fintech giant Paytm, on Friday (May 20) reported a 41% year-on-year (YoY) increase in its net loss to INR 2,396.4 Cr for financial year 2021-22 (FY22).

However, the startup’s revenue from operations grew 77% to INR 4,974.2 Cr during the year.

Paytm said its average monthly transacting users (MTU)  grew 35% to 6.08 Cr during FY22, while the loans disbursed by it registered a growth of 441% in value terms to INR 7,623 Cr. The number of loans disbursed jumped 478% to 1.5 Cr.

In a release, Paytm said it made significant investments in marketing expenses to grow its MTU in FY22, while its employee costs rose due to investments to scale up its device deployment to 10 Lakh per quarter from 8 Lakh per quarter. 

Meanwhile, on a quarterly basis, the startup’s net loss rose 72% YoY to INR 762.5 Cr during January-March, while revenue from operations grew  89% to INR 1,541 Cr. 

Paytm’s earnings before interest, tax, depreciation and amortisation (EBITDA) remained negative during the quarter, but narrowed to INR 368 Cr from INR 420 Cr in the year-ago quarter. The startup said it is on track to break-even at EBITDA level by the quarter ending September 2023.

The average MTU during the quarter grew 41% to 7.09 Cr, while the gross merchandise value more than doubled to INR 2.6 Lakh Cr during the quarter. 

Paytm disbursed 65 Lakh loans amounting to INR 3,553 Cr during the quarter, a growth of 417% in terms of value of loans. 

Paytm said it had 29 Lakh deployed devices as of March 31, 2022 as compared to 8 Lakh devices a year ago.

Shares of Paytm ended 3.9% higher at INR 575.35 on the BSE on Friday. The company declared the financial results after market hours.