Paytm posts strong revenue growth of 76% to Rs 1,914 crore, EBITDA before ESOP improves 61% y-o-y

India’s mobile payments pioneer Paytm today shared its Q2FY23 results. The company has posted a 76% year-on-year (YoY) growth in revenue to ₹1,914  crore in Q2FY23, while EBITDA before Esop cost improved 61% YoY by Rs 259 crore. The company also reported a sustained increase in contribution profit, up 224% YoY and 16% QoQ to Rs 843 crore.

Revenue from payment services to consumers stood at Rs 549 crore, up by 55% YoY, while payment services to merchants was Rs 624 crore, up by 56% YoY. The company said its net payment margin (calculated as payments revenues plus other operating revenues, less payment processing cost) stood at Rs 443 crore, up 428% YoY.

The company said that its payments business revenue grew 56% YoY and 9% QoQ in Q2FY23 driven by continued platform expansion, higher user engagement, growing merchant base and devices-led leadership in offline payments.

For Paytm, loan distribution has been one of the most rapidly growing businesses. This is seen in the financial services revenue, which at ₹349 crore now accounts for 18% of the company’s total revenue, compared to 8% in Q2FY22.

It further said that it sees “a long growth runway ahead,” in the loan distribution business (Paytm Postpaid, Personal Loans, Merchant loans). In Q2FY23, Paytm Postpaid disbursements stood at Rs 4,050 crore, (449% YoY and 20% QoQ growth), while Personal loans disbursements amounted to Rs 2,055 crore (736% YoY and 53% QoQ growth). Meanwhile, merchant loan disbursements stood at Rs 1,208 crore (342% YoY and 46% QoQ) due to growth in devices business.

Meanwhile, its commerce and cloud services reported a revenue of ₹377 crore — a 55% YoY growth. 

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