Paytm loan disbursements up by 482% in Q2

11 Oct 2022 , 09:24 AM

Paytm’s payment platform made loans worth Rs7,313 crore ($894 million) in the second quarter that ended in September 2022, an increase of 482% year over year (YoY) (Q2 FY23). In Q2 FY22, it was worth Rs1,257 crore.

In a BSE filing, One 97 Communications Ltd, the firm behind Paytm, reported that the number of loans disbursed increased by 224 percent year over year to 9.2 million in Q2. Paytm disbursed 2.84 million loans over the same period of the previous fiscal year (Q2 FY22). On the BSE on Monday morning, the company’s stock was up 0.53 %, trading for Rs711.6 a share.

Through Paytm, financial institution partners offer both consumer and merchant loans. It does not include the quantity or cost of loans obtained by third parties using advertising on its platform.

One 97 Communications stated that they were “continually seeing growth and upsell potential in our industry while working with our partners to remain focused on the quality of the book.” Asset quality information was not provided.

The volume of all merchant payments increased steadily. From Rs1.96 trillion in Q2 FY22 to Rs 3.18 trillion in Q2 FY23, Gross Merchandise Value (GMV) increased by 63% YoY. It records the value of all payments made to merchants over time via transactions on its app, payment devices, or payment solutions. Money transfers and other consumer-to-consumer payment services are not included.

The business claimed that the Paytm super app continues to see increased user engagement. The average Monthly Transacting User (MTU) increased from 57 million in Q2 of FY22 to 79.7 million in Q2 of this year, a 39 % YoY increase.

It increased from 1.3 million in Q2 FY22 to a total of 4.8 million offline payment devices (point of Sale terminals including Soundbox) at merchant stores across the nation in the reporting quarter.

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