“The total merchant GMV processed through our platform for the quarter (for three months ended June 2023) was Rs 4.05 lakh crore ($49.3 billion), marking a YoY growth of 37%,” Paytm said in a quarterly business update. GMV stands for gross merchandise value.
Paytm saw continued expansion of its consumer base with average monthly transacting users (MTU) at 9.2 crores for the quarter (average for three months ended June 2023), up 23% YoY.
“Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential,” said Paytm.
The loan distribution business recorded disbursements of Rs 14,845 crore, a YoY growth of 167%.
“MoM loan distribution trend in June reflects the higher disbursal in May which included pent-up demand for merchant loans from April due to one of our partners not disbursing as they were upgrading their systems,” Paytm said, adding that the focus remains on asset quality by tightening credit policy wherever needed proactively.
It currently has 7 active lending partners and aims to onboard 3-4 partners in FY24.The number of merchants paying subscription for payment devices like Soundbox and POS machines reached 79 lakh as of June 2023, an increase of 4 lakh devices in the month and 11 lakh devices in the quarter.
“With our subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution,” it said.
After being underperforming since its listing in November 2021, Paytm shares have been on a winning run in 2023. So far in the calendar year, the new-age stock is up 62% after reporting a second quarter of EBITDA (before ESOP cost) profitability in Q4.
Recently, global brokerage firm BofA Securities had raised the target price to Rs 1,020 from Rs 885, citing momentum in high-margin lending and Soundbox business but Macquarie has downgraded the new-age stock to neutral rating with a target price of Rs 800.
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