Paytm has reported an all-round growth across its lending, merchant payments, and consumer payments segments in the July-September quarter. Paytm disbursed 92 lakh loans during July-September 2022, more than triple of that in the same quarter a year ago. The value of loans grew nearly six-fold to Rs 7,313 crore, Paytm said in a statement of performance update for Q2FY23. Paytm’s payment transactions business grew too, with monthly users growing about 40 per cent on-year to 7.97 crore; while the merchant payment volumes grew 63 per cent on-year during the quarter.
Paytm said that its loan distribution business is witnessing an accelerated growth and that the annualised run rate of the platform is now Rs 34,000 crore in the month of September. The total loans distributed by Paytm includes both the customer loans and the merchant loans. “We continue to see growth and upsell opportunities in this business, while we work with our partners to remain focused on the quality of the book,” Paytm said.
The payments platform also mentioned their subscription as a service model which has aided the deployment of devices across the country leading to higher payment volumes. Paytm, by the end of the second quarter of this fiscal, has deployed 48 lakh devices, including both Point-of-sale (POS) and sound devices. In September last year, this number stood at 13 lakh. The deployment of devices, the company said, has boosted the subscription revenues and funnel for the merchant loan distribution.
Paytm shares jumped over 1.14 per cent to hit an intraday high of Rs 719.60 on NSE. So far this year, Paytm shares have plunged over 46.6% eroding investors’ wealth. However, global brokerages such as Goldman Sachs and Citi remain bullish on the stock and maintain buy call. Earlier last week, JP Morgan analysts mentioned that Paytm is believed to be going under a model shift from chasing ‘growth at any loss’ to profitability at scale. According to the analysts, a key value driver for Paytm has been the scale-up of the financial services business of the platform.