Paytm Records 30% Jump In Loans Disbursed, 14% QoQ Growth In GMV In Q2 2022

Paytm reported the performance update for the quarter ended June 30, 2022, in a regulatory filing with the Bombay Stock Exchange (BSE). The listed fintech startup reported growth across multiple metrics, particularly in its lending business.

In Q2 2022, Paytm disbursed almost 8.5 Mn loans, a 30% growth from the 6.5 Mn loans it had disbursed in the quarter ended June 30, 2022.

At the same time, the value of loans disbursed by Paytm also registered growth. In Q2 2022, it disbursed INR 5,554 Cr in loans, 56% higher QoQ than the INR 3,553 Cr it disbursed in Q1 2022.

Paytm’s lending business has increased significantly over the last five quarters, with the year-on-year increases in both the number and the value of loans disbursed being 492% and 779%, respectively. 

“We are also seeing increases in average ticket size due to the scale-up of the personal loans business in particular,” the company said in its regulatory filing.

The company also recorded a higher total merchant payments volume quarter-on-quarter. In Q2 2022, Paytm recorded a gross merchandise value of INR 2.96 Lakh Cr, 14% higher than the INR 2.6 Lakh Cr it recorded in Q1 2022.

Paytm’s regulatory filings also showed that it recorded a slight increase in the monthly transacting users on its app. In the quarter ending June 2022, the company had 75 Mn monthly transacting users, up about 6% from the 71 Mn Paytm had in Q1 2022.

The fintech startup, which went for India’s largest tech startup IPO in November 2021, also reported that it has a network of 3.8 Mn payment devices across the country as of June 2022, including its soundbox and point of sale (PoS) devices. Over the last quarter, the number has grown 31% QoQ from the 2.9 Mn devices it had in the quarter ended March 31, 2022.

Paytm’s shares opened at INR 703 apiece on Monday (July 11), up slightly from the INR 698.75 it closed last Friday.

Paytm reported a 41% YoY increase in its net loss to INR 2,396.4 Cr for FY22. Further, its revenue from operations grew 77% to INR 4,974.2 Cr in FY22. While Paytm’s earnings before interest, tax, depreciation and amortisation (EBITDA) remained negative during the quarter, it narrowed to INR 368 Cr from INR 420 Cr in the year-ago quarter.

The startup has said that it remains on track to break even at the EBITDA level by the quarter ending September 2023.

Recently, Paytm’s CEO Vijay Shekhar Sharma bought about 1.72 Lakh shares of the fintech unicorn, worth INR 11 Cr in May, along with multiple other Paytm executives who bought shares around the same time.