Paytm Sees 471% YoY Growth In Loans Disbursed, 48% Growth In MTU

SUMMARY

Paytm disbursed 5.5 Mn loans in the two months ending May 2022, up 471% YoY from the 966K loans it disbursed in the same duration last year

The listed startup disbursed loans worth INR 3,576 Cr during the two months ending May 2022, up 829% YoY from the INR 385 Cr it disbursed in the two months ending May 2021

Paytm recorded an MTU of 74 Mn during the two months ending May 2022, up 48% from the 50 Mn it recorded during the same period in 2021

Paytm has recorded strong growth in its lending business with the number of loans disbursed going up 471% year-on-year (YoY) for the two months ending May 2022, along with strong growth in many other related metrics, its regulatory filings with the Bombay Stock Exchange (BSE) revealed.

Shares of the listed startup closed at INR 614 apiece, up 1.27% from the previous day’s close. However, Paytm’s current share price remains a far cry – 72% to be exact – from its listing price of INR 2,150 apiece.

The listed startup disbursed 5.5 Mn loans in the two months ending May 2022. Over the same time last year, Paytm had disbursed about 966K loans.

If looked at from a quarterly perspective, the company disbursed 6.5 Mn loans in the quarter ending March 2022, up 374% from 1.38 Mn loans it had disbursed in Q1 2021. In the quarter before, that is Q4 2021, Paytm had disbursed 4.4 Mn loans. Therefore, the company recorded a 47% growth quarter-on-quarter (QoQ).

Paytm also disbursed a lot more in terms of the loan amount as well. The fintech unicorn disbursed loans worth INR 3,576 Cr during the two months ending May 2022. Same time last year Paytm had disbursed INR 385 Cr in loans, therefore recording an 829% growth YoY.

The fintech unicorn offers multiple lending solutions on its platform. These products include its buy now pay later (BNPL) offering Paytm Postpaid, its personal loan offering and co-branded credit cards.

It has also expanded into many other fintech verticals such as insurtech and investment tech. Paytm offers vehicle, health and accidental insurance on its platform, while also offering Paytm Stocks, its insurtech product helping people invest in the stock market.

The Increasing Engagement On Paytm’s Platform

During the two months ending May 2022, Paytm processed payments worth a gross merchandise value of INR 1.96 Lakh Cr, up 105% YoY from the INR 96,000 Cr it recorded during the same time last year.

Quarterly, Paytm had reported having processed merchant payments worth INR 2.59 Cr in Q1 2022, up 104% from the INR 1.27 Cr it recorded in Q1 2021.

At the same time, the company recorded an increase in the number of users transacting on its platform. According to the filings, Paytm recorded monthly transaction users (MTU) of 74 Mn during the two months ending May 2022, up 48% from the 50 Mn it recorded during the same period in 2021.

Paytm also noted that it had added more than 2 Mn offline devices in a year. For the two months ending May 2022, it reported having deployed 3.4 Mn devices, up 277% from the 0.9 Mn devices it had in May 2021.

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

Paytm has said that it is on track to break even at the EBITDA level by Q3 2023.

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