Fintech giant pared its loss to Rs 222 crore in the October-December 2023 quarter on the back of a 38% rise in its revenue as it disbursed more loans and processed a greater number of transactions during the festive season.
Paytm had reported a net loss of Rs 392 crore in Q3 of the previous financial year.
Its revenue rose to Rs 2,850 crore in Q3 FY24 from Rs 2,062 crore a year ago, mainly due to strong performance in its payments and financial services business unit.
Paytm, which was listed on the stock market in 2021, has been focusing on expanding its loan book in a bid to shore up revenues as well as become more resilient in the face of UPI transactions that have eaten away at its transactions business.
In a recent stock exchange filing, the Noida-headquartered company said it would cut down on disbursing small loans under Rs 50,000 and instead focus on higher-ticket loans to low-risk, high-credit-worthy customers.
Paytm disbursed 1.15 crore loans in the quarter—up 10% from a year ago. However, this was a quarter-on-quarter (QoQ) decline of 15%. The value of its loans was Rs 15,535 crore in Q3 FY24, versus Rs 9,958 crore in the comparable period a year ago.
Its total transactions increased by 55% to 1,185 crore, leading to a 43% increase in revenue from payments and financial service vertical. The festive season was partly responsible for the increase in total transactions, Paytm said.
“In this quarter, our merchant subscriber network crossed the 1 crore benchmark and grew by 14 Lakh for the quarter. Strong device growth is also fueling growth in GMV, which helps us drive payment processing revenue,” Paytm said in its press release.
(More details to follow.)
Edited by Kanishk Singh
