One 97 Communications (Paytm) said its gross merchandise value (GMV) - or payments made to merchants through its platform - jumped 131% to Rs 83200 crore ($11.2 billion) in October 2021 from a year earlier.The growth momentum in GMV continued in October 2021 driven by festive season spends, as well as an increase in: number of merchants and consumers, adoption of new products, transactions for both online and in-store merchants, and in deployed devices.
The monthly transacting users ("MTU") have consistently grown in FY 2021 and in the first two quarters of FY 2022 and the trajectory has continued in October 2021 with 63 million MTUs, growth of 35% Y-o-Y over the 47 million MTUs in October 2020.
The trend of growth in the company's GMV / MTU representing one facet of its consumer and merchant engagement has continued to increase since second quarter of FY 2021 and in October 2021 its monthly GMV / MTU increased to Rs 13,217 ($177), growth of 71% over Rs 7,736 ($104) for the month of October 2020.
The company said it continued to witness strong adoption of its devices business amongst merchants. As disclosed in the prospectus, the total number of devices deployed across its merchant base has increased from 0.9 million as on 30 June 2021 to approximately 1.3 million as on 30 September 2021 to approximately 1.4 million as on 31 October 2021.
The company said its lending business has seen good adoption since launch of products such as Paytm Postpaid and personal loans with financial institution partners. Due to cautious approach in making new disbursements due to the second wave of the COVID-19 pandemic in May 2021 and June 2021, the company processed a total of 1.4 million loans through its financial institution partners in Q1 FY 2022.
The company saw continued recovery in the segment as its financial institution partners' disbursal almost doubled with over 2.8 million loans in Q2 FY 2022. The October 2021 month saw continued increase in adoption across its different financial services products. The lending business, continued to show very strong growth as a result of rapid scale up of all of our lending products, including Postpaid, consumer loans and merchant loans.
Paytm's financial institution partners disbursed a total of 1.3 million loans in October 2021 aggregating to a total disbursal of Rs 627 crore ($84 million), implying a 472% increase in numbers of loans disbursed Y-o-Y and 418% increase in value of loans disbursed Y-o-Y.
Shares of Paytm were down 6.44% at Rs 1463.45. The stock entered the bourses on Thursday, 18 November 2021. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150.
In two sessions, the stock is currently trading at a discount of 31.93% over its IPO price.
The IPO of Paytm was subscribed 1.89 times. The issue opened for bidding on 8 November and it closed on 10 November. The price band of the IPO was fixed at Rs 2080 to Rs 2150 per share.
Paytm is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021. The company launched Paytm in 2009, as a mobile-first digital payments platform to enable cashless payments for customers giving them the power to make payments from their mobile phones. It started with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument.
The Paytm app is a payments-led super-app offering consumers with innovative and intuitive digital products and services. It offers consumers a wide selection of payment options on the Paytm app, which include (i) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts and (ii) major third-party instruments, such as debit and credit cards and net banking.
The company posted a revenue of Rs 890.8 crore and net loss of Rs 381.9 crore in quarter ended June 2021. The board of Paytm will consider Q2 results on 27 November 2021.
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