One97 Communications Limited, which owns the brand Paytm, has announced its Q3 FY2022 results. During the October-December quarter, the company reported 89% growth in its revenue to Rs 1,456 crore, EBITDA loss (before ESOP expense) reduced to Rs 393 crore from Rs 488 crore in the corresponding quarter last year. This revenue growth was driven by higher monetization and increased merchant payments through MDR bearing instruments, new equipment subscriptions and loan disbursements.
The company also clocked its average monthly transacting users at 64.4 million and a GMV of Rs 2.5 lakh crore.
The company’s revenue from payment services to consumers grew 60% to Rs 406 crore, while revenue from payment services to merchants grew by 117% to Rs 586 crore. Cloud and commerce services revenue also grew 64 per cent to Rs 339 crore.
A large part of the company’s third-quarter results were driven by an uptick in its financial services. The company disbursed 4.4 million loans (Y-o-Y growth) of a total value of Rs 2,181 crore (Y-o-Y growth of 366%).
The company’s credit business is spread over three main verticals – Paytm Postpaid (Buy Now, Pay Later), Merchant Loans and Personal Loans, viewed extensively.
A Paytm spokesperson said, “Our business is to offer payments to consumers and merchants, and cross-sell them high-margin financial services and commerce. We offer our services for bill payments, money transfers and offline merchant payments. Consumers receive, and offer to, customers on the App paytm payment instrument ,Paytm Wallet, Paytm Payments Bank Account, and Paytm Postpaid) and Paytm UPI. We acquire merchants for QR payments, EDC and soundbox devices and payment gateways (for online merchants). We use the insights from our platform to offer various financial products to our clients and traders. We also provide high-margin commerce and cloud services to help our merchants enable commerce using the Paytm App.
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