Paytm remains profitable for straight third quarter; Q1FY24 revenue jumps 39 pc YoY to Rs 2,342 crore

New Delhi [India], July 21 (ANI): India’s leading payments and financial services company Paytm has announced strong June quarter earnings driven by increase in merchants subscription revenues, merchant payment volumes and loan disbursals.
In Q1FY24, the company's revenue surged by 39 per cent year-on-year to Rs 2,342 crore while EBITDA before ESOP cost grew to Rs 84 crore as compared to Rs 52 crore in last quarter (excluding the UPI incentive).
On a yearly basis, the company posted a massive improvement of Rs 359 crore in EBITDA before ESOP costs.
Paytm’s payment revenue has increased 31 per cent YoY to Rs 1,414 crore. This comes as the company’s net processing margin went up 69 per cent YoY on year to Rs 648 crore.
The company’s merchant payments volumes (GMV) grew 37per cent YoY at Rs 4.05 lakh crore in June quarter. Its merchant base has expanded to 3.6 crore, thanks to digital payment becoming mainstream and as demand for products like Soundbox and POS machines increase. In fact, in the last one year, its merchant subscriber base has more than doubled to 79 lakh as of June 2023.
The company believes that India could have potential of 10 crore merchants accepting digital payments. “Considering this large scale of opportunity, and our ability to monetise them, we continue to invest in expanding our merchant acquiring sales teams with an addition of nearly 10,000 members over last year,” said Paytm in Q1FY24 earnings release.
Meanwhile, its financial services revenue surged 93 per cent  YoY to Rs 522 crore in Q1FY24 on the back of growing credit business. In Q1FY24, Paytm distributed 1.28 crore loans, an increase of 51 per centYoY with value of loans up significantly by 167 per cent on year to Rs 14,845 crore driven by strong product offerings across segments — Paytm Postpaid, Personal Loans, and Merchant Loans. Also, the total number of unique borrowers who have taken loan through the platform has increased by 49 lakh over the last year to 1.06 crore.
Besides, the company continues to monetize Paytm app traffic in its Commerce and Cloud segment by providing marketing services to its merchants. In Q1FY24, Paytm’s Commerce & Cloud revenue grew by 22 per cent YoY to Rs 405 crore. 
With India’s payment ecosystem digitizing at a rapid pace, Paytm believes it will continue to capitalize on growth potential with its innovative products that aim to enhance customer transaction experience. (ANI)