The number of loans disbursed by Paytm in April & May rose 54% YoY to 85 Lakh
In May 2023, Paytm disbursed 44 Lakh loans worth INR 5,502 Cr
Total merchant gross merchandise value processed through Paytm in April and May surged 35% YoY to INR 2.65 Lakh Cr
paytm
on Monday (June 5) said it disbursed 85 Lakh loans worth INR 9,618 Cr ($1.2 Bn) in the first two months of the June quarter of FY24, registering a 54% and 169% jump year-on-year (YoY), respectively.
The fintech major had disbursed 55 Lakh loans worth INR 3,576 Cr ($476 Mn) in the corresponding period of the last fiscal year.
The company disbursed 44 Lakh loans in May as against 41 Lakh In April. The value of loans disbursed stood at INR 5,502 Cr ($666 Mn) in May, an increase of 33.7% from April.
While a technology system upgrade undertaken by one of the loan partners of Paytm affected its disbursals in April, the company said that the upgrade has been completed now. Some pent-up demand from April is being met in May, it added.
Paytm continued to witness growth in total merchant payments volume as the total merchant gross merchandise value (GMV) processed through its platform for April and May stood at INR 2.65 Lakh Cr ($32.1 Bn), registering a YoY growth of 35%.
The Vijay Shekhar Sharma-led startup reiterated that its focus continues to be on payment volumes that generate profitability either through net payments margin or from direct upsell potential.
Meanwhile, Paytm said that 75 lakh merchants are paying subscriptions for its payment devices currently and this number increased by 4 Lakh in the month of May.
However, Paytm’s average monthly transacting users (MTU) stood at 9.2 Cr in the two months of April and May, same as at the end of April but a 25% jump YoY.
It must be noted that Paytm is showing signs of reaching profitability as per its guidance, largely driven by the growth in its lending business and digital payments vertical.
In the March quarter of FY23, Paytm reported a 78% YoY decline in loss to INR 167.5 Cr while operating revenue increased 51% YoY to INR 2,334.5 Cr.
In Q4 FY23, the fintech startup disbursed 1.19 Cr loans worth INR 12,554 Cr on its platform.
Paytm shares were trading 0.6% lower at INR 713 on the BSE at 2.45 PM today.
