– EBITDA before ESOP showed an improvement of ₹188 crore reaching Rs 219 crore
– Strengthening its in-store payments revenue, Paytm’s merchant subscription payment devices crosses one crore mark reaching 1.06 crore

MUMBAI, 20 JANUARY, 2024 (GPN): India’s mobile payments pioneer, Paytm, has delivered robust financial performance in Q3FY24, marked by significant growth in subscription revenue, improved margins, and increased payment business revenue.

In the October-December quarter, Paytm achieved an impressive 38% YoY growth in revenue, reaching Rs 2,850 crore. The company’s EBITDA before ESOP showed substantial improvement,
surging Rs 188 crore YoY to Rs 219 crore.

The company witnessed an improvement of Rs 170 crore YoY in its profit after tax (PAT) at (Rs 222 crore). Bolstered by the expansion of net payments margin and the financial services business, Paytm’s contribution profit soared by 45% YoY, totaling
Rs 1,520 crore.

The number of merchants subscribing to Paytm’s payment devices reached 1.06 crore as of December 2023, marking a YoY increase of 49 Lakh.
The payments business exhibited significant growth, with revenue escalating by 45% YoY to Rs 1,730 crore, and the net payment margin witnessing a 63% YoY increase to Rs 748 crore.

Merchant payments volume (GMV) grew by 47% YoY, reaching Rs 5.10 Lakh crore. Revenue from financial services and other segments climbed by 36% YoY to Rs 607 crore, driven by personal loans, merchant loans distribution, and increased revenue from the insurance broking business.

Within the Payments sector, the company is focused on strengthening its acquiring leadership using a multi-device strategy. Furthermore, it will emphasize the introduction of new use cases, including Credit on UPI and Autopay, to stimulate monetizable incremental customer acquisition. In the financial services segment, there is an emphasis on broadening high-ticket
loans by pursuing new lending partners. Simultaneously, the company is extending its offerings in embedded insurance and merchant insurance, and actively cross-selling equity trading to the Paytm consumer base.

In the December quarter, Paytm disbursed loans worth Rs 15,535 crore, marking a YoY increase of 56%. The total number of unique users availing loans through the Paytm platform increased by 44 lakh over the past year, reaching 1.25 crore.

In a stock exchange filing, the company expressed optimism in the high-ticket loan business, revealing plans to accelerate further by onboarding additional lending partners. Currently
collaborating with two lending partners, Paytm aims to add at least 3-4 more partners by Q1 FY2025. The Average Monthly Transacting Users (MTU) for Q3FY24 grew by 18% YoY, reaching 10 crore.

Paytm’s marketing services revenue saw a 22% YoY increase to Rs 514 crore in Q3FY24. In the Marketing Services sector, the company offers merchants a range of services, including Deals,
Gift Vouchers, Loyalty programs, and facilitates commerce services. This includes advertising on the Paytm App for various brands and businesses.

Paytm’s board also approved its Rs 100 Cr investment in Gujarat International Finance Tec-City (GIFT City) to establish a global financial ecosystem.

Leveraging its success in real-time
payments, Paytm aims to streamline cross-border remittances with efficient, AI-powered solutions. Additionally, Paytm will invest in setting up a development center in GIFT City to create a technology backbone for these solutions.Ends