Paytm’s Q1 revenue jumps 89% to ₹1,680 crore
- Contribution Profit grows 197% (YoY) to ₹726 cr
- Contribution margin increases to over 43% (YoY) from 27%
- Device deployment increases to 3.8 million
- Loan disbursal value rises 779% YoY to ₹5,554 cr
AdvertisementThe company’s contribution profit grew 197% (YoY) to ₹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% (YoY) 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% (YoY) jump in Gross Merchandise Value (GMV), which stood at ₹3 lakh cr during the quarter.
Paytm’s payments services revenue grew by 69% YoY (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% (YoY) 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% (YoY) 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% YoY and 30% QoQ.
The value of the loans disbursed stood at ₹5,554 cr, marking a growth 779% (YoY) of 56%(QoQ). 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.
Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on email@example.com
Popular on BI
- Life and times of Rakesh Jhunjhunwala — the man behind the trader
- DOJ officials were alarmed by surveillance footage of the Mar-a-Lago room where classified info was being stored, report says
- Meet Judge Bruce Reinhart the magistrate who approved the FBI search warrant into Trump's Mar-a-Lago home receiving threats from MAGA supporters
- Mutual funds tank up on financial services and retail stocks
- Smoking, alcohol and obesity caused 4.4 mn cancer deaths in 2019: Lancet
- Nifty Bank index up over 11% so far this year, BoB outperforms index
- There is a breather from record high inflation, but still above tolerance band: RBI
- Zomato’s quick commerce app Blinkit to deliver printouts at your doorsteps in 11 Minutes