Paytm recorded a massive 401 percent year-on-year growth in its lending business in the third quarter of financial year 2021-22, the payments operator's parent firm One97 Communications said in a regulatory filing on January 10.
The gross merchandise value (GMV) - a key metric to assess the business performance - jumped by 123 percent YoY during Q3 FY2022, it said.
The total user engagement witnessed a 37 percent YoY growth with 64.4 million average monthly transacting users (MTU) in the third quarter.
While the number of loans disbursed through the platform increased to 4.4 million, marking a 401 percent surge, the value of loans disbursed during the quarter was Rs 21.8 billion (run-rate of $1 .2 billion), "an increase of 365 percent YoY", the company noted.
"Growth of GMV continues in Q3 FY 2022 even after the festive season. GMV processed through our platform during the quarter aggregated to approximately Rs 2,501 billion ($33.6 billion), growth of 123 percent compared to Q3 FY2021," it added.
"Our monthly transacting users (MTU) showed consistent growth in FY 2021 and in the first two quarters of FY 2022. The trajectory has continued in the third quarter of FY 2022 with 64.4 million average MTUs, growth of 37% YoY over the 47.1 million average MTUs in Q3 FY 2021 ," One97 Communications further informed the stock exchanges.
The company also noted that the total number of devices deployed across Paytm's merchant base increased "from 0.9 million as on June 30, 2021, to approximately 1.3 million as on September 30, 2021 to approximately 2.0 million as on December 31 ,2021."
The regulatory filing, which listed Paytm's operational performance for the quarter, came on a day when the shares of One97 Communications fell more than 2 percent to a 52-week low.
This, according to experts, could be linked to Macquarie Securities India suggesting that the company’s future earnings growth may be worse than it had earlier forecast.The brokerage firm slashed its price target for the stock by 25 percent to Rs 900 from Rs 1,200 earlier, implying a further downside of 28 percent from the January 7 closing. Macquarie retained its ‘underperform’ rating on the stock.