Paytm’s revenue jumps 89% to Rs. 1,680 crore in Q1 FY2023, EBITDA (before ESOPs) loss reduces by Rs. 93 Cr Q-o-Q

• Contribution Profit grows 197% Y-o-Y to ₹726 Cr
• Contribution margin increases to over 43% Y-o-Y from 27%
• Device deployment increases to 3.8 million
• Loan disbursal value rises 779% YoY to ₹5,554 Cr

Digital financial services giant One97 Communications that owns the brand Paytm on Friday reported its Q1FY23 results, with 89% Y-o-Y revenue growth to Rs 1,680 crore, while EBITDA (Before ESOP) loss reduced to Rs 275 crore, marking an improvement of Rs 93 crore Q-o-Q.

The company’s contribution profit grew 197% Y-o-Y to Rs 726 Cr, leading to an increase in contribution margin to 43% of revenues in comparison to 35% in Q4FY22. Contribution margin has improved on account of increased payment profitability and higher mix of high-margin businesses.

The company’s user engagement, measured by monthly transacting users (MTU), grew 49% Y-o-Y to 74.8 million during the quarter, while the total devices deployed increased to 3.8 million (2.8 million added in the past 12 months). This has resulted in a 101% Y-o-Y jump in Gross Merchandise Value (GMV), which stood at ₹3 lakh Cr during the quarter.

Paytm’s payments services revenue grew by 69% Y-o-Y (3% Q-o-Q), supported by rapid growth in user engagement, merchant base, use cases on the Paytm super app and subscription revenue from payment devices. Paytm undertook account level rationalization among online merchants to focus on profitable GMV. Furthermore, there was no UPI incentive recorded during the quarter.  

This has led to an increase in net payment margin to 35% from 17% Y-oY through reduction in payment processing charges, increase in subscription revenue, MTU growth on our platform and account level rationalization for online merchants.

The company’s revenue from financial services grew 393% Y-o-Y during the quarter, led by massive growth in Paytm’s loan distribution business. During the quarter, Paytm disbursed 8.5 million loans, representing a growth of 492% Y-o-Y and 30% Q-o-Q.

The value of the loans disbursed stood at ₹5,554 Cr, marking a growth 779% Y-o-Y of 56% Q-o-Q. Moreover, the company has now reached an annualized run rate of approximately ₹24,000 Cr of loan disbursements through its platform, with significant upside potential from increasing penetration.

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