Paytm’s loan disbursement business hits 9.2 million

As per the latest data, the number of loans disbursed grew by 224% to 9.2 million loans in the quarter ended September 2022, while the value of loans disbursed grew by 482% year-on-year. 7,313 crore ($ 894 million).

Paytm aka One97 Communications said, “We continue to see growth and sales opportunities in this business while we work with our partners to focus on book quality.”

It further said that the company continues to strengthen its leadership in offline payments, with the deployment of 4.8 million devices at merchant stores across the country.

“With our subscription as a service model, strong adoption of the tools leads to higher payment volume and subscription revenue while increasing the funnel for our merchant credit delivery,” Paytm said in an official statement.

Apart from the loan disbursement business, Paytm Super App also continues to see increasing consumer engagement for the company’s comprehensive payment offerings.

“We continue to drive user engagement with average MTU (monthly transacting users) for the quarter ended September 2022, registering a growth of 39% to 79.7 million.”

“Total Merchant GMV (Gross Merchandise Value) processed through our platform for the quarter ended September 2022 aggregated 3.18 lakh crore ($39 billion), marking an annual growth of 63%,” it added.

According to analysts at JP Morgan, paytm annual loan disbursement The run-rate as of Aug-22 is Rs 290 billion and its penetration is 4% and <0.5% of MTU for postpaid and personal loans respectively, and 4% for merchant loans for device merchants (as on Jun-22).

The company also noted that its portfolio credit losses are operating below levels underwritten by financing partners, which could increase the scope for incentive income on its syndicated loan book.