Paytm's credit business reported a 167 percent year-on-year (YoY) growth for the June quarter, disbursing Rs 14,845 crore in loans. The overall number of loans facilitated on the payments platform grew to 1.28 crore, a 51 percent increase. The company is likely to announce its June quarter financial results in two to three weeks.
The Paytm stock was up 1.53 percent to Rs 850.10 at 12:12 pm on July 5.
The Noida-based payments platform has seen its monthly transacting user base grow to 9.2 crore, a 23 percent YoY growth from 7.5 crore users it had during last year's June quarter. The number of payment devices deployed grew to 79 lakhs, which almost doubled from 38 lakh devices it had during the previous fiscal.
The devices include point-of-sale devices and soundboxes that announce scan-and-pay transactions. The company earns monthly rent from both types of devices. It added 11 lakh devices during the June quarter. Paytm continues to be the third-largest player in the UPI ecosystem, the country's most popular digital payment method with over 9 billion monthly transactions and close to Rs 15 crore in transaction value.
Paytm's market share on the UPI platform stands at around 13 percent. Its bigger rivals are PhonePe and Google Pay. PhonePe also started a merchant lending business this quarter.
Paytm also has a wallet business, but the transaction value and volume for that are not publicly available. Merchant payment volumes, or GMV (gross merchandise value), for the June quarter stood at Rs 4.05 lakh crore, a YoY growth of 37 percent.
"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," the company said in the announcement to the exchanges.
Paytm currently has seven financial partnerships for its loan distribution, and plans to onboard three to four more players during this fiscal. The company also announced a loan distribution partnership with Shriram Finance last week.
During the March quarter, Paytm reported a 52 percent increase in revenue to Rs 2,335 crore, while its losses narrowed to Rs 168 crore from Rs 763 crore in the year-ago period.
The company's share price has seen a 60 percent growth since early this year. However, it is still trading at a discount of more than 60 percent to its IPO price.
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