Paytm parent One97 Communications on Wednesday reported rapid growth in its lending business, with loan disbursals in the April-May period jumping 471 percent compared with the corresponding period a year ago. Paytm shares gained on the company’s strong operating update.
The disbursement in value terms stood at Rs 3,576 crore in the first two months of this quarter, representing a growth of 829 percent over last year. “We are also seeing increases in the average ticket size due to a scale-up of the personal loans business in particular,” Paytm said.
On the merchant payments side, too, Paytm reported strong growth as merchant payments volume rose 100 percent on the year with the gross merchant value processed hitting Rs 1.96 lakh crore in the past two months.
Overall, Paytm said that monthly transacting users on its super app rose 48 percent on a year-on-year basis to 74.3 million in the ongoing quarter.
Furthermore, in its statement, the company stated that Paytm Super App with its comprehensive offerings is the one-stop destination for the diverse payments needs of millions of users in India.
This has also led to new milestones achieved in user engagement, with the average monthly transacting users (MTU) for the two months ending May 2022 at 74.3 million, registering a growth of 48% Y-o-Y.
In offline payments, Paytm continues its leadership with the deployment of 3.4 million devices at merchant stores across the country. Paytm said, “The strong adoption of devices also correlates with the rise in merchants eligible for loans from our platform.”
Stock Action
Shares of Paytm have remained under pressure ever since debuting on the bourses in November 2021. The stock has fallen more than 70 percent from its issue price of Rs 2,150 per share.
That said, the stock has recovered more than 20 percent after hitting its 52-week low of Rs 510.1 recently.
Shares of Paytm were up 1.5 percent at Rs 615.6 on the National Stock Exchange.
Paytm stock hit a fresh all-time low of Rs 510.1 apiece last month, since then the stock has added more than 22 percent. The Paytm Super App registered a 48 percent on-year growth with the average monthly transacting users (MTU) for the two months ending May 2022 at 74.3 million.
Paytm stock may remain range-bound between 550 – 700 levels in the current scenario, Ravi Singh, VP & Head of Research, Share India Securities, told FinancialExpress.com.
About Company
Paytm is India’s payment Super App offering consumers and merchants the most comprehensive payment services. Paytm enables commerce for small merchants and distributes various financial services offerings to its consumers and merchants in partnership with financial institutions.
One 97 Communications is fintech major Paytm’s parent. It reported a consolidated net loss of Rs 763 crore in Q4 FY22, higher than the net loss of Rs 441.80 crore in Q4 FY21.
Its consolidated revenue from operations grew 89% YoY to Rs 1,540.90 crore in the quarter under review compared with Rs 815.30 crore in the corresponding quarter last year.
