5 Sep 2023 , 01:44 AM
In a filing to the exchanges on Tuesday, One 97 Communications, which runs the fintech platform Paytm, reported a 20% year-over-year increase in its average monthly transacting users (MTU), which stood at 9.4 crore for the quarter to date (average for July and August 2023) period.
The business reported that its customer base had continued to grow.
In its loan distribution segment, where the payment platform disbursed loans totaling Rs 10,710 crore in July and August, it too claimed a 137% YoY increase.
August saw a loan disbursement of Rs 5,517 crore. According to Paytm, 88 lakh loans were disbursed in the first two months of the current quarter, an increase of 47% year over year.
As of August 2023, there were 87 lakh merchants paying subscription fees for payment devices, a rise of 42 lakh devices year over year, continuing the payment monetization during this time. Until yet in the quarter, merchant payment volumes (GMV) totaled Rs 3 lakh crore ($36.3 billion), a 43% YoY increase.
According to the company, growth may be muted until the industry outlook improves since ‘we remain focused on the portfolio performance of our lending partners.’ We presently work with 8 lending partners, including those who distribute credit cards, and our goal for FY 2024 is to add another 3 to 4 partners.
We have discussed our efforts to calibrate growth in order to further tighten the credit quality of loans provided on our platform over the previous few quarters. According to the corporate statement, ‘We have effectively shown increasing credit quality for Paytm Postpaid, where the ECL [estimated credit loss] has decreased to a range of 0.65% – 0.85% from a range of 0.75% – 1.00% in Q4 FY 2023.
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