Paytm posts 327% spurt in credit offtake at Rs 3,928 crore

Paytm

Continuing with its strong business momentum, digital payments platform Paytm on February 8 said that it has disbursed loans worth Rs 3,928 crore ($480 million) in January, recording a surge of 327 percent on-year.

The number of loans disbursed in the month came in at 3.9 million, indicating a growth of 103 percent over last year.

Monthly transacting users (MTU) for the fintech company increased 29 percent to 89 million during this period. Merchants paying subscription for payment devices stood at 6.1 million as of January.

Paytm also achieved a new milestone in offline payments leadership, with 6.1 million merchants now paying subscription for devices. "This is an increase of 0.3 million in January 2023," the company said in a statement.

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"With our subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution," it said.

The total merchant GMV (gross merchandise value) processed in the month increased 44 percent to an aggregated Rs 1.2 lakh crore over the last year.

In the third quarter of FY23, the company's revenue surged 41 percent on-year to Rs 2,062 crore, aided by a rise in merchant subscriptions to payment devices and loan disbursals. Net loss also narrowed to Rs 392 crore in the December quarter, as against Rs 778 crore a year ago.

Paytm founder and CEO Vijay Shekhar Sharma said that the company managed to achieve operating profitability three quarters ahead of its guidance. The company had earlier given a guidance to achieve operating profitability by Q2 of 2023-24.

This is a developing story. Stay tuned for more updates.