• Home
  • Apps
  • Apps News
  • Paytm's Parent Firm Witnesses Strong Revenue Momentum With 42 Percent YoY Growth

Paytm's Parent Firm Witnesses Strong Revenue Momentum With 42 Percent YoY Growth

Paytm Super App continued to see growing consumer engagement, registering a growth of 32 percent on a yearly basis.

Paytm's Parent Firm Witnesses Strong Revenue Momentum With 42 Percent YoY Growth

Analysts say Paytm is expected to be adjusted EBITDA positive in March 2023

Highlights
  • The company's EBITDA before ESOP cost stood at Rs. 31 crore
  • The performance is driven by increased adoption by consumers, said Paytm
  • Paytm said that it will maintain discipline on costs
Advertisement

One97 Communications, which owns the payments and financial services platform Paytm, continue to witness strong revenue momentum across its business verticals.

The fintech firm on Friday reported its revenue from operations increased to Rs. 2,062 crore, a growth of 42 percent on a yearly basis and 8 percent on a quarterly basis.

The company's EBITDA before ESOP cost stood at Rs. 31 crore with EBITDA before ESOP margin at 2 percent of revenues as compared to (27 percent) a year ago, it said.

The performance, it said, is driven by increased adoption by consumers and subscription services by merchant partners along with sustained growth seen in loan distribution and commerce business.

Coming to revenue from financial services, which majorly is loan distribution, now accounts for 22 percent of its total revenues, up from 9 percent what it was in the same quarter last quarter.

"This has been made possible due to the relentlessly focused execution by our team. The team was asked to focus on growth with quality revenues that contribute to the bottom line," said Paytm founder and CEO Vijay Shekhar Sharma.

"We have achieved this milestone without losing sight on growth opportunities and keeping all compliances as well as risk factors under a strict watch," Sharma added.

Sharma further told shareholders that the next key milestone for Paytm is free cash flow generation.

"With our focus on growth and keeping a tight vigil on operational risk and compliances, I am very confident that we will soon achieve our next milestone of becoming a free cash flow generating company."

Analysts say Paytm is expected to be adjusted EBITDA positive in March 2023, two quarters ahead of the estimates and the company's guidance of September 2023.

The company today said that it will maintain discipline on costs, as it continues to invest in areas where it sees potential for future growth, such as marketing (for user acquisition) or sales team (to increase merchant base and subscription services). Paytm said it will continue to focus on building a sustainable and long-term cash-generating business.

Notably, the Paytm Super App continued to see growing consumer engagement with the average Monthly Transacting User for the quarter that ended December 2022 at 85 million, registering a growth of 32 percent on a yearly basis.

The total merchant Gross Merchandise Value processed through the Paytm platform for the quarter that ended December 2022 aggregated to Rs. 3.46 lakh crore, marking a year-on-year growth of 38 percent.

The digital payments and financial services company Paytm's number of loans grew 117 percent yearly to 3.7 million for the month of December, and 137 percent to 10.5 million cumulative loans for the three months ended December 2022.

Total disbursements for the October-December quarter were 357 percent higher on year at Rs 9,958 crore.

 


The iQoo 11 is currently the most powerful Android phone you can buy in India. Should you buy it right away? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Paytm, One97 Communications Paytm
Twitter to Share Ad Revenue With Some of Its Content Creators, Says Elon Musk
Intel Fears Another EU Antitrust Fine Despite Winning Its Court Fight Last Year
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »