Paytm loss widens 45% to Rs 778 cr in Q3, revenue rises 89%

The number of loans through the fintech platform grew to 4.4 million in Q3 of FY22, representing a growth of 401 per cent year on year - whereas value of loans rose 366 per cent to Rs 2,181 crore

Fintech major Paytm saw its revenue increase 89 per cent to Rs 1,456 crore in the December quarter (Q3) on a year on year basis, whereas net loss widened 45 per cent to Rs 778 crore. 

However, the company said that its contribution profit (defined as revenue from operations less payment processing charges, promotional cashback and incentives, and other direct costs) improved to 31.2 per cent of revenue in Q3 of FY22 from 8.9 per cent in Q3 of FY21.

“We continue to rapidly expand our customer and merchant base. Number of consumers on our platform is now over 350 million and our merchant base has expanded to 24.9 million from 20 million a year ago,” the company said.

Average monthly transacting users, which is the number of unique users with at least one successful payments transaction in a month, grew by 37 per cent Y-o-Y to 64.4 million in Q3 of FY22. Meanwhile, processing of merchant payments through all instruments provided by the company (including Paytm Wallet, Paytm Payments bank account, other banks’ netbanking, credit and debit cards, UPI etc) grew 123 per cent to Rs 2.5 lakh crore.

The number of loans through the fintech platform grew to 4.4 million in Q3 of FY22, representing a growth of 401 per cent Y-o-Y and 55 per cent Q-o-Q. The value of these loans grew 366 per cent Y-o-Y and 73 per cent  Q-o-Q, to Rs 2,181 crore.

“We have seen strong growth across all our products: Paytm Postpaid (BNPL), personal loans and merchant loans. We have expanded partnerships to 8 banks and NBFCs,” said the company.

Paytm shares closed at Rs 953.25 on the BSE on Friday, down 56 per cent from its issue price of Rs 2,150 and 51 per cent lower than its listing price of Rs 1,950. While the company was valued at almost $21 billion in its initial public offering, its market capitalisation at present stands at $8.28 billion.