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Domestic Mutual Funds Increase Stake in Paytm by 1% in Q2 FY25

October 14, 2024, 2:05 pm

Domestic institutional investors, led by mutual funds, have expanded their stake in Indian fintech giant Paytm. According to the latest shareholding data filed by the company, mutual funds have increased their stake by 1% in the second quarter of FY25.

Mirae Asset and Nippon Mutual Funds are the key players in this increased stake, holding 4.49% and 2.27%, respectively. The rise in domestic mutual fund investment reflects growing confidence in Paytm’s business model and potential for future growth.

Analyst Reports Highlight Paytm’s Growth Potential

Dolat Capital, in its recent report, emphasized Paytm’s strong position in India’s digital payments landscape. The report noted stable UPI market share, a resilient merchant base, and growing partnerships as key drivers of Paytm’s success. “Paytm remains in a bright spot of continued rapid growth in digital payments in India,” Dolat Capital mentioned, predicting multi-fold revenue growth for the company over the next decade with steady profitability expected from FY26 onwards.

Similarly, Emkay Global projects strong growth and profitability for Paytm. The firm estimates that Paytm is on track to achieve annual revenues of approximately Rs 100 billion by FY28, with a surplus of Rs 25-30 billion over operating costs.

Brokerage firm Ventura recently initiated coverage on Paytm with a target price of Rs 1,170 over the next 24 months. Despite regulatory challenges faced by its associate Paytm Payments Bank (PPBL), analysts at Ventura expressed confidence in Paytm’s business model. They noted that Paytm’s soundbox and POS systems are becoming essential tools for digital payments, positioning the company to benefit from the continued growth of UPI.

The report also highlighted Paytm’s adaptability to regulatory changes, its technological capabilities, and its strong relationships with merchants and Monthly Transacting Users (MTUs) as key factors for sustained growth.

Financial Performance and Future Outlook

In Q1 FY25, Paytm reported operating revenue of Rs 1,502 crore and a balance sheet with Rs 8,108 crore in cash. The company expressed optimism about future revenue and profitability, driven by factors such as growth in Gross Merchandise Value (GMV), an expanding merchant base, recovery in the loan distribution business, and cost optimization efforts.

Paytm has reiterated its commitment to focusing on its core payments and financial services business, leveraging the expanding digital economy for sustained growth.

Zomato Buys Paytm Entertainment Ticketing Business

August 22, 2024, 2:55 pm

One 97 Communications Limited, the parent company of Paytm, announced on Wednesday that it has agreed to sell its entertainment ticketing business to Zomato Limited in a deal valued at ₹2,048 crore. This strategic move marks a significant shift in the entertainment ticketing landscape.

Transition Period for Users

The entertainment ticketing services, which include movie, sports, and event bookings, will continue to be available on the Paytm app for a transition period of up to 12 months. During this time, users can still access the services they are accustomed to while the integration with Zomato is completed.

Strategic Deal

According to Paytm, the sale underscores the substantial value the company has built through its entertainment ticketing business. This segment has provided millions of Indians with convenient access to tickets for various entertainment events. The deal with Zomato highlights the scale and impact Paytm has achieved in this domain.

Definitive Agreements Signed

Paytm confirmed that definitive agreements have been signed for the transaction. The sale will include all aspects of the entertainment ticketing business, from movies to live performances, further expanding Zomato’s footprint in the entertainment sector.

This acquisition by Zomato aligns with its strategy to diversify its offerings and enhance user experience, while Paytm continues to streamline its business operations.

Paytm In Discussions With Zomato Over Movie Ticketing Business

June 16, 2024, 4:49 pm

Online payment company Paytm is currently in talks with food delivery enterprise Zomato, as per the sources familiar with the matter.

According to a Bloomberg report, discussions have progressed to advanced stages, yet no final decision has been announced, as there are other potential buyers in the business.

This development comes around the time, company’s CEO Vijay Sharma has Last month, reported its first-ever decline in sales and pledged to reduce non-essential its assets.

Besides, the company also cautioned about potential layoffs due to regulatory measures affecting Paytm Payments Bank. Thus, significantly impacting its operations and forcing the company to develop new collaborations with lenders.

Meanwhile, Paytm’s annual sales in movie and events ticketing business, currently stands at ₹1,740 crore in the financial year 2023-24.

If this deal becomes successful, it will help Paytm to focus significantly on travel, deals and cashbacks. Businesses, which are important enough to expand its merchant base and increase its revenue.

This deal will also help Zomato to broaden its business in a new area of the online business.

Paytm Terminates Undisclosed Number Of Employees, Offers Outplacement Support

June 10, 2024, 1:47 pm

Paytm’s Parent company One97 Communications Limited fired an undisclosed number of employees as a part of the restructuring process on Monday.

As a result, Paytm is giving outplacement support to these employees, and is collaborating with over 30 companies, which are currently hiring or facilitating, by sharing information to place them immediately.

‘One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company’ said company’s statement.

Further, the company has claimed, it has ensured fairness and transparency in this process, by giving bonuses that due to employees.

These restructuring efforts come, following Reserve Bank of India’s (RBI) prohibition on Paytm Payments Bank Limited (PPBL), a subsidiary of Paytm, from accepting deposits, credit transactions, or top-ups in customer accounts, wallets, and FASTags, from March 15. The RBI made this decision to safeguard the interests of customers and merchants.

Thus, due to the ban, Paytm’s loss increased to Rs 550 crore in the quarter of January-March 2024, compared to a loss of Rs 167.5 crore during the corresponding period in the previous year.

In future, the company will continue to Trim its non-core business segments and streamline its organizational structure using AI-driven strategies, as Paytm will continue to enhance its profitability, aligning with its objectives for the fiscal year 2024.

Market Share Of Paytm Continues To Fall After RBI Crackdown

June 8, 2024, 8:54 pm

According to a report by Bloomberg, The market share of Paytm in India’s online payment sector has declined for the fourth consecutive month. This decline comes as the fintech company struggles to recover from the Reserve Bank of India’s (RBI) directive to its affiliate, Paytm Payments Bank, to cease operations. Data from the National Payments Corporation of India reveals that Paytm’s share of total UPI transactions dropped to 8.1% in May from 13% in January. Meanwhile, PhonePe maintains its position as the most popular payment app with a 49% market share, followed by Google Pay at 37%. Since the RBI’s order, Paytm’s shares have plummeted by approximately 55%.

The report also highlights that Paytm Payments Bank, despite being part of Paytm’s founder and CEO Vijay Shekhar Sharma’s fintech empire, is not directly controlled by Paytm. In response to the regulatory setback, Sharma has collaborated with leading Indian banks such as Axis Bank Ltd., HDFC Bank Ltd., and State Bank of India Ltd. to facilitate instant money transfers previously handled by Paytm Payments Bank.

Sharma acknowledged the near-term financial impact on Paytm’s revenue and profitability due to business disruptions in the last quarter. This statement was made in Paytm’s recent earnings filing, as reported by Bloomberg.

Layoffs In India’s Tech: Ola, Flipkart, Byju’s, Swiggy Among 20 Companies Cutting Jobs In 2024

June 6, 2024, 3:29 pm

The layoffs in India’s tech market is experiencing significant layoffs, along with other global job market. Large new-age companies such as Swiggy, Ola, and Paytm have been cutting down their workforce since January 2024. Here is a compilation of Indian firms that have laid off their employees this year:

Simpl Layoffs

In May 2024, Simpl, a buy-now-pay-later platform, laid off around 160-170 employees, accounting for approximately 25% of its total workforce. The layoffs were reported by MoneyControl and were part of the company’s efforts to streamline operations.

Ola Cabs Layoffs

Ride-hailing giant Ola Cabs terminated around 200 employees in April 2024, representing about 10% of its workforce. This move was aimed at improving profitability. Additionally, Ola’s CEO Hemant Bakshi resigned just three months after his appointment, adding to the company’s tumultuous period.

Byju’s Layoffs

Facing financial challenges, ed-tech platform Byju’s laid off 500 employees in April 2024, which constituted 3% of its total workforce. The layoffs affected roles in sales, marketing, and teaching. Reports indicated that the layoffs were conducted over phone calls followed by emails.

Swiggy Layoffs

In January 2024, Swiggy, the online food delivery company, cut around 400 jobs. The layoffs were part of a strategy to improve the company’s finances. Although Swiggy’s food delivery business had been profitable for several quarters, the startup was not profitable at the group level.

Flipkart Layoffs

In the same month, Walmart-owned Flipkart fired between 1,100 and 1,500 employees, reducing its workforce by 5-7%. According to an Economic Times report, the company had also paused fresh hiring over the past year to manage costs.

Good Glam Group Layoffs

Content-to-commerce platform Good Glam Group laid off 150 employees, about 15% of its workforce, in April 2024. The job cuts were part of a new organizational framework aimed at streamlining operations and eliminating redundancies.

Other Notable Layoffs in Indian Firms

Several other Indian firms have also announced job cuts in 2024:

PrepLadder and Scaler: These ed-tech companies announced job cuts.
Wint Health, Lentra, and Muvin: Fintech startups that laid off employees.
HealthifyMe and Pristyn Care: Health industry firms that announced job cuts.
Cult.fit and Cure.fit: Fitness startups that trimmed their workforce.
Bolt.Earth, CoRover, Airmeet, WayCool, Licious, and BlissClub: Other startup companies that reduced their workforce this year.

The wave of layoffs in India’s tech and startup sector highlights the challenging economic environment and the companies’ efforts to adapt to changing market conditions.

Paytm registers 25% growth in fiscal year 2023-24

May 22, 2024, 11:26 am

One 97 Communications, the parent company of the renowned fintech platform Paytm, announced a remarkable 25 percent surge in revenue, reaching Rs 9,978 crore for the fiscal year 2023-24. The company credited this growth to increases in Gross Merchandise Value (GMV), device installations, and expansion in financial services distribution.

Since its Initial Public Offering (IPO), which marked the company’s public debut, Paytm achieved its first full-year Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) before Employee Stock Ownership Plan (ESOP) profitability, amounting to Rs 559 crore, according to its latest earnings release.

However, in the January-March quarter, Paytm’s revenue slightly declined by 3 percent year-on-year to Rs 2,267 crore. The company clarified that this reduction was due to reduced marketing spending, particularly in February and March, as it paused most user growth expenditures. Paytm plans to reinvest in these areas in the upcoming fiscal year.

Paytm anticipates substantial improvement from the second quarter of the fiscal year 2024-25, focusing on resuming paused products and achieving consistent growth in operational metrics. In the first quarter of the current fiscal year, Paytm’s priorities include acquiring new merchants, reactivating inactive merchants, and reallocating devices from inactive merchants to new ones.

Despite a smaller net addition of device merchants expected in Q1 FY 2025, Paytm forecasts improvement thereafter, aiming to recover to previous trendlines by Q3 FY 2025.

Revenue from payment services surged by 26 percent to Rs 6,235 crore, while net payment margin increased by 50 percent to Rs 2,955 crore. Gross merchandise value (GMV) soared by 39 percent to Rs 18.3 lakh crore. Moreover, the number of merchant-paying subscriptions for devices reached 1.07 crore as of March 2024, marking a rise of 39 lakh.

Revenue from financial services and other sectors also experienced significant growth, up by 30 percent to Rs 2,004 crore, with the value of distributed loans increasing by 48 percent to Rs 52,390 crore.

Paytm acknowledged that the active rate and per device subscription revenue were impacted, with merchant subscription revenue per device per month declining to Rs 90 in Q4 and expected to bottom out at Rs 80 in Q1. However, Paytm anticipates this figure to rise towards Rs 100 by Q4 of the current fiscal year.

Furthermore, Paytm emphasized its commitment to addressing merchant needs through innovative product launches, exemplified by the introduction of two “Made in India” soundboxes customized for merchants’ requirements, boasting louder speakers and longer battery life.

Paytm retail and MF investors say ‘Paytm Karo’; Stock added to MSCI small cap index

May 16, 2024, 2:36 pm

One97 Communications, the company behind the widely-used fintech platform Paytm, has been added to the MSCI Emerging Markets Small Cap Index. This move signifies growing confidence among both domestic and international investors in Paytm, evident from substantial stake increases by foreign portfolio investors (FPIs), domestic investors, and major Mutual Funds like Mirae and Nippon India Mutual Fund.

Being one of the 29 stocks included in the MSCI Small Cap Index, Paytm’s addition is expected to attract USD 273 million in inflows, which is crucial for the international benchmarking of Indian companies. This decision is part of MSCI’s regular review process, which adjusts to changing market dynamics and is scheduled for May 31, 2024. MSCI, known as Morgan Stanley Capital International, is a global authority in equity, fixed-income, and hedge fund indices.

During the March quarter of 2023-24, Indian mutual funds increased their holdings in Paytm. Notably, Mirae Mutual Funds raised their shareholding to 2.39 crore shares (3.76 per cent), while Nippon Mutual Funds increased their stake to 1.66 per cent from 1.05 per cent. Consequently, domestic institutional investors (DIIs) saw a rise in stake from 6.06 per cent to 6.86 per cent.

According to data from stock exchanges, domestic mutual funds augmented their stake in Paytm by 1.77 per cent, reaching 6.15 per cent from 4.99 per cent at the end of the December quarter.

Retail investors’ shareholding also witnessed an increase from 12.85 per cent to 14.53 per cent sequentially, while Non-Resident Indians (NRIs) observed a rise from 0.67 per cent to 0.85 per cent. In addition, FPI shareholding in Paytm increased by 2.49 per cent to 20.19 per cent in Q4-2023-24, with new investors like Tiger Pacific Capital, Societe Generale, and Norway’s Government Pension Fund Global investing in the stock.

In February of the current year, Morgan Stanley Asia (Singapore) Pte. – ODI acquired 50 lakh shares of Paytm worth Rs 243.6 crore in a bulk deal.

Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research, expresses strong optimism about India, especially with active participation from mutual funds and High Net Worth Individuals (HNIs)/retailers in the Indian equity markets. Paytm holds 60.4 per cent of its holdings by Foreign Institutional Investors (FIIs) as of the March quarter of 2023-24.

Following NPCI’s approval on March 14, 2024, to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model, Paytm expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are now operational on the TPAP, simplifying the process for Paytm to migrate user accounts to these Payment Service Provider (PSP) banks.

Furthermore, Paytm is currently concentrating on its UPI Lite wallet to cater to users preferring wallets for low-value everyday payments. Paytm UPI Lite functions as an on-device wallet, allowing users to store funds and conduct transactions conveniently on the go. It provides swift payments without requiring a PIN, ensuring seamless transactions.

Paytm Market Cap Drops to $2.5 Billion; Shares Continue to Decline

May 7, 2024, 5:05 pm

On Tuesday, the market capitalization of One 97 Communications, the parent company of fintech platform Paytm, neared $2.5 billion as its shares continued to decline. Trading at Rs 334.15 on the Bombay Stock Exchange, the Noida-based company’s stock saw a 4.99% drop at market close. This follows a 5% decrease on Monday, triggering the lower circuit, in response to the resignation of Bhavesh Gupta, the COO and president, on Saturday.

During its IPO in 2021, Paytm was valued at nearly $20 billion, but its market capitalization dropped to $13 billion shortly after listing, falling below its $16 billion private market valuation. The decline in shares began in January following regulatory actions by the Reserve Bank of India against Paytm Payments Bank, leading to the resignation of MD and CEO Surinder Chawla.

Recent changes in Paytm’s leadership include Varun Sridhar, CEO of Paytm Money, being replaced by Rakesh Singh. Sridhar’s departure was reported on May 2. Paytm’s founder and CEO, Vijay Shekhar Sharma, emphasized a focus on payments and lending, with Sridhar tasked with expanding reach in mutual funds and wealth management, and Singh concentrating on technology-driven wealth options.

In March, the NPCI allowed One 97 Communications to operate as a third-party application provider on the Unified Payments Interface infrastructure, positioning it against competitors like Google Pay and PhonePe. Regulatory actions against Paytm Payments Bank have significantly impacted the company’s mobile wallet business, leading to a decline in transactions over the past three months due to restrictions on customer acquisition.

Paytm Shares Fall 5% After COO Bhavesh Gupta’s Resignation

May 6, 2024, 6:56 pm

Shares of One 97 Communications, which owns Paytm, dropped by 5% to Rs 351.70 on Monday after Bhavesh Gupta resigned as the company’s Chief Operating Officer (COO). Gupta also held the position of President at Paytm. The company confirmed Gupta’s resignation in a filing to the stock exchanges. His last day with the company will be May 31, 2024.

At 12:48 PM, the stock price was down by 4.87% at Rs 351.90 on the National Stock Exchange. Gupta cited personal reasons for his resignation and mentioned his intention to take a career break. He expressed confidence in Paytm’s future and offered to support the company in an advisory capacity.

According to a report by ET, Paytm has seen several significant management changes lately amid regulatory challenges and uncertainty regarding the company’s direction.

In April, Surinder Chawla, the Managing Director and CEO of Paytm Payments Bank Limited (PPBL), tendered his resignation, citing personal reasons and a quest for “enhanced career opportunities.” His tenure will conclude on June 26.

Furthermore, Paytm Money, the wealth management arm of One 97 Communications, revealed the selection of Rakesh Singh as its new CEO, taking over from Varun Sridhar, who had served as CEO since 2020. Sridhar has now assumed the position of CEO at Paytm Services Private Limited.

As per a company announcement, Paytm’s payment and credit operations are overseen by Chief Operating Officers and Chief Business Officers, each boasting over five years of tenure at Paytm and 20 to 26 years of industry expertise. This seasoned leadership team will now collaborate directly with Paytm’s CEO and other senior executives. The company is actively nurturing its next generation of leaders and implementing robust succession planning strategies.

Bank of America (BofA) has recently resumed its evaluation of One 97 Communications, assigning it an ‘Underperform’ rating and establishing a target price of Rs 400. The brokerage observed that Paytm is encountering fierce competition in the payments sector and anticipates lackluster fourth-quarter earnings. BofA attributes this trend to regulatory actions by the Reserve Bank of India (RBI).

Google Pay to Globalize UPI, Aiding Establishment of Similar Payment Systems Abroad

January 17, 2024, 4:33 pm

Google Pay, under Alphabet Inc.’s Google India Digital Services Pvt, has entered into a partnership with the National Payments Corporation of India (NPCI) to extend its services beyond India. The collaboration aims to leverage India’s Unified Payments Interface (UPI) and make international payments more convenient for Indian travelers. Additionally, the partnership will assist in establishing UPI-like digital payment systems in other countries.

The agreement aligns with NPCI’s efforts to strengthen India’s position in the global digital payment landscape. The collaboration is expected to simplify remittances by reducing reliance on traditional money transfer channels. India’s Prime Minister Narendra Modi’s government has expressed ambitions to globalize UPI, with previous link-ups with countries like Singapore for real-time money transfers. Explorations for collaborations with other nations, including Sri Lanka and the United Arab Emirates, have also been reported.

As of November, the UPI platform recorded transactions amounting to ₹17.4 trillion ($209 billion), according to the latest data from the Reserve Bank of India. The collaboration between Google Pay and NPCI is poised to contribute to the further internationalization of India’s digital payment systems.

New Regulations and Changes in UPI Transactions Effective From Today

January 1, 2024, 4:15 pm

Starting January 1, 2024, the Reserve Bank of India (RBI) has implemented several measures to enhance and regulate the Unified Payments Interface (UPI), a rapidly growing mode of immediate money transfers through mobile devices in the country.

To broaden the scope of UPI payments, the National Payments Corporation of India (NPCI) has directed payment apps and banks, including Google Pay, Paytm, and PhonePe, to deactivate UPI IDs and numbers inactive for over a year. Additionally, the daily payment limit for UPI transactions is capped at ₹1 lakh.

However, exceptions have been made, and on December 8, 2023, RBI increased the transaction limit for UPI payments to hospitals and educational institutions to ₹5 lakh. Meanwhile, a 1.1% interchange fee will be applicable on specific merchant UPI transactions exceeding ₹2,000 and made using prepaid payment instruments (PPI), such as online wallets.

In response to the rising instances of online payment fraud, a four-hour time limit will be imposed each time a user initiates the first payment exceeding ₹2,000 to another user with whom they have not previously transacted. The introduction of the UPI ‘Tap and Pay’ functionality is anticipated to go live for UPI members soon.

Moreover, a collaboration between RBI and the Japanese company Hitachi will bring UPI ATMs to various locations in India. With this, users can scan a QR code to withdraw cash directly from their bank accounts.

The Unified Payments Interface (UPI) has witnessed tremendous growth, crossing 10 billion transactions in August 2023. The new regulations aim to streamline and secure UPI transactions, making it a more efficient and reliable mode of digital payments in India.

Paytm cuts over 1,000 jobs in bid to reduce staff costs by 15%

December 26, 2023, 1:28 am

One 97 Communications, the parent company of Paytm, has laid off over 1,000 employees, impacting various departments such as payments, lending, operations, and sales. The move aims to optimize operations, reduce staff costs by 15%, and enhance profitability. The decision, made over the past few months, is attributed to performance-related concerns and reflects broader challenges faced by companies in the new economy sector.
This sector has witnessed over 28,000 job cuts in the first three quarters of the year, indicating financial difficulties and a tougher fundraising environment. Paytm’s restructuring aligns with the industry trend, particularly in its lending business.

While a Paytm spokesperson disputed the reported number of job cuts, they confirmed the ongoing changes. The company aims to reduce staff costs by 10-15% in the current fiscal year. To minimize the impact on employees, Paytm is actively implementing AI-led automation to fill certain roles, especially in areas affected by the layoffs.

Simultaneously, the company reportedly aims to fortify its core payments business by recruiting around 15,000 employees in the upcoming year. The spokesperson underscored Paytm’s dedication to developing new products in its wealth management sector and expanding its footprint in the insurance distribution business, foreseeing the creation of new job opportunities in these strategic domains.

As Paytm adapts to these changes, it strives to maintain a delicate equilibrium between cost optimization and growth, positioning itself for long-term sustainability in the dynamic financial services sector. Currently, it remains unclear whether the company provided severance pay to the laid-off employees or those facing imminent termination.

Paytm fires over 1,000 employees in effort to reduce costs

December 25, 2023, 1:10 pm

The parent company of Paytm has reportedly let go of over a thousand workers from its engineering, sales, and operations departments in an effort to cut expenses and to consolidate operations, according to the sources. The layoffs that have taken place over the last several months represent one of the biggest personnel reductions in an Indian corporation this year.

These days, Paytm’s layoffs rank among the largest of any new age tech company in India, with over a thousand jobs lost. Due to a lack of finance and internal business reorganisation, startup enterprises have been the largest employers in India this year with thousands of layoffs.

The layoffs have affected more than 10% of Paytm’s personnel overall, according to the article. The move to reduce employment is in line with Paytm’s larger initiatives to reorganise its business operations. As it navigates adjustments to its operational structure, the fintech company plans to implement additional cost-cutting initiatives in the coming months.

As per the sources, Paytm’s lending division, which has experienced rapid expansion in the past year, is probably responsible for the majority of the company’s employment losses. Paytm Postpaid is currently expanding into wealth management, although it primarily offers loans up to ₹50,000.

However, on December 7, there was a notable 20% decrease in Paytm’s stock price. Stock fell sharply after the business announced that it will be cancelling the Paytm Postpaid loan product.

This year, the majority of employment losses in the nation have been attributed to younger tech businesses, not simply Paytm. This year, new businesses laid off over 28,000 workers, according the sources.

In addition to, 2023 saw layoffs in a number of industries, including IT, edtech, and start-ups. The main justifications given for these actions were global headwinds and the approaching financing winter.

RBI Raises UPI Payment Limits for Hospitals and Educational to Rs 5 lakh

December 8, 2023, 12:53 pm

In a major decision, the RBI on Friday announced to raise the UPI payment limit to hospitals and educational institutions to Rs 5 lakh from Rs 1 lakh presently and hiked the cap for e-mandates for recurring payments to Rs 1 lakh.

Unveiling the December bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das said the limit for various categories of Unified Payments Interface (UPI) transactions has been reviewed from time to time.

“It is now proposed to enhance the UPI transaction limit for payment to hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh per transaction,” he said.

With 4.8 million deployed devices, Paytm increases its position as the industry leader in payments

October 10, 2022, 7:08 pm

Paytm, India’s top provider of digital financial services and mobile and QR payments, has further solidified its position as a market leader in the payments industry with more than 4.8 million deployed devices.

One 97 Communications Ltd., the parent company of Paytm, reported in a regulatory filing to the stock exchanges that the company disbursed 9.2 million loans in the second quarter of the fiscal year 2022–23, representing a volume increase of 224% year over year. At Rs 7,313 crore ($894 million), the total amount of loans disbursed during the quarter increased by 482% year over year.

According to an update on operating performance that One 97 Communications Ltd. provided to the stock exchanges, the company continues to see plenty of growth and upsell prospects in this business and is now concentrating on the quality of the book.

The company has released its monthly business operating performance update for the second quarter of the fiscal year 2022–23. Consumer engagement is at its peak on the Paytm Super App, and Paytm’s loan distribution business continues to experience rapid growth with disbursements at an annualised run rate of Rs 34,000 ($4.1 billion).

The company emphasised its subscription-as-a-service business model and claimed that the widespread use of devices is fueling larger payment volumes, subscription revenues, and the distribution of merchant loans.

The company’s extensive payment offerings continue to enjoy increasing user engagement thanks to the Paytm Super App. As a result, the company’s average monthly transactional users (MTU) for the quarter reached a new high of 79.7 million, up 39% year over year.

The Gross Merchandise Value (GMV), which is the amount of merchant payments processed through the platform, increased consistently for Paytm. The GMV for the second quarter of FY23 was Rs 3.18 lakh crore ($39 billion), up 63% from the same period last year.

After a solid start to the fiscal year, the company has gained more momentum with the strong performance in Q2 FY23.

The company’s revenue increased by Rs 1,680 crore, or 89 percent year on year, in the first quarter of 2022-2023, while the loss from EBITDA (before ESOP) decreased to Rs 275 crore, a Rs 93 crore improvement from the previous quarter.

Additionally, the business’ contribution profit increased by 197% year over year to Rs 726 crore, which resulted in an increase in contribution margin to 43% of revenues from 35% in the fourth quarter of 2021–2022.