Paytm Money In The Black, Posts INR 42.8 Cr Profit In FY23

Top Deck Reshuffle At Paytm: Rakesh Singh Replaces Varun Sridhar As Paytm Money CEO

SUMMARY

Paytm Money, which posted a net loss of INR 10.7 Cr in FY22, turned profitable in FY23 on the back of a 140% year-on-year jump in its brokerage income

Paytm Money’s operating revenue jumped 105% to INR 131.3 Cr in FY23 from INR 64.1 Cr in FY22

Paytm Money is a SEBI-registered investment adviser. It competes with the likes of Zerodha, Groww and Upstox

Trading platform Paytm Money turned profitable in the financial year 2022-23 (FY23), posting a net profit of INR 42.8 Cr as against a loss of INR 10.7 Cr in the previous fiscal year, helped by steadily growing brokerage income.

The wholly-owned subsidiary of One97 Communications Ltd reported a 105% jump in operating revenue to INR 131.3 Cr in FY23 from INR 64.1 Cr in FY22.

Paytm Money’s income from fees and commission rose to INR 121 Cr in the reported period from INR 64.1 Cr in FY22. In that, brokerage income jumped 140% year-on-year (YoY) to INR 112 Cr in FY23.

The platform’s income from depository services also grew 25.5% YoY to INR 5.9 Cr.

Launched in 2018, Paytm Money is a SEBI-registered investment adviser, offering investment execution and advisory services. It competes with Zerodha, Groww, and recently-launched PhonePe’s Share.Market, among others.

While the income from fees and commissions contributed 92% to the platform’s total operating revenue during the period, the rest came from interest income, which increased to INR 10.3 Cr in FY23 from about INR 8 Cr in the prior fiscal.

Including other income, Paytm Money’s total revenue stood at INR 132.8 Cr during the year under review as against INR 68.8 Cr in the prior year.

On the other hand, total expenses grew 13.2% to INR 90 Cr in FY23 from INR 79.5 Cr in the previous year, with employee benefit expenses accounting for the biggest chunk of expenditure.

Paytm Money spent INR 16.8 Cr towards employee benefits in the reported year as against INR 22.8 Cr in FY22.

Meanwhile, the platform’s subcontract expenses jumped to INR 14.7 Cr in FY23 from INR 7.9 Cr in the previous year.

Paytm Money also spent INR 10.1 Cr on business promotion during the year under review as against INR 3.4 Cr in FY22.

However, its payment gateway expenses fell over 30% YoY to around INR 3 Cr in FY23 while connectivity charges also dropped over 39% YoY to about INR 12 Cr in the year.

In an attempt to further bolster its platform offering, Paytm Money launched a bonds platform earlier this year, which would allow retail investors to venture into the debt market.

Meanwhile, One97 Communications Limited’s main entity Paytm continues to make losses. Its consolidated net loss narrowed 44.5% YoY to INR 358.4 Cr in Q1FY24. For the full year FY23, its net loss stood at INR 1,776.5 Cr.