Paytm Q1: Value of loans disbursed increases 167%, GMV rises 37% YoY

Focus is on payment volumes that generate profitability, says fintech company

One97 Communications, the holding company of fintech major Paytm, saw a total gross merchandise value (GMV) of Rs. 4.05 trillion during Q1 of FY24. This compares to a GMV of Rs. 2.96 trillion during Q1 of FY23, a growth of 37 per cent, year-on-year (YoY). 

On Wednesday, Paytm reported a 167 per cent growth in the value of loan disbursements for the quarter-to-date period. It distributed loans amounting to Rs. 14,845 crore in Q1 of FY24, a significant rise from Rs. 5,554 crore in Q1 of FY23.

The company also saw the number of loan disbursements rise in Q1 of FY24.

It distributed 12.8 million loans in Q1 of FY24 from 8.5 million loans in the same period of the previous financial year, a 51 per cent rise.

“Our focus remains on the asset quality by continuously reviewing with our partners cohort data and tightening credit policy wherever needed. This reflects in the growth of value of loans distributed in the quarter,” the company disclosed in an operating performance update. 

It expanded its consumer base as it witnessed a 23 per cent YoY rise from 75 million monthly transacting users (MTUs) for Q1 of FY23 to 92 million in Q1 of FY24.   

“Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential,” the company added. 

The fintech company, a major player in the payments devices segment, such as soundboxes, now has 7.9 million merchants, who pay a subscription for its payment devices.

The company recorded a 109 per cent YoY growth in total subscription merchants (payments devices) from 3.8 million on June 22. 

Paytm is expected to add another 15 million customers to its soundbox segment in the next 2-3 years, according to a Bank of America (BofA) Securities report.

Competitors such as BharatPe, PhonePe and banks like HDFC Bank, State Bank of India and IndusInd Bank are also focused on this segment.