Paytm Pays $264 Mn of Loans In July MTUs at 77.6 Mn

Paytm disclosed loan payments with an annualised run rate (ARR) of more than INR 250,000 Cr ($3 Bn) on their platform on July

Paytm believes there is plenty of growth potential and opportunity for upsells in its lending business

Paytm’s GMV for July 2022 was 1.06 billion rupees. 1.06 Lakh Cr ($13 Bn) which is an increase of 82 percent YoY

Paytm announced it was pleased to announce on Thursday (August 12) that it repaid 2.9 million loans during July, an increase of 296 percent year-on-year (YoY) and adds up to a total amount of INR 2,090 crore ($264 Mn) in July.

The platform for digital payments disclosed loan disbursements with an annualised rate (ARR) of more than INR 25000 Cr ($3 Bn) through its platform in July. The loan disbursement ARR was at over 24,000 Crore during June.

Paytm believes there is plenty of growth and potential for growth in its lending business. “We are cautious about the quality of the books (especially considering the potential for the macro effects),” the startup stated within the BSE filing.

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Additionally, Paytm’s monthly transaction customers (MTUs) for July 2022 were 77.6 Mn. This is an rise of 41% YoY since it’s Paytm Super app continues to experience increased customer engagement with its payment options.

It is worth noting that Paytm’s July MTU was slightly higher than the normal MTU which stood at 74.8 Mn for the June quarter of FY23..

Paytm reported an increase of 89% YoY in operating revenues up to INR 1,680 billion during the quarter, showing that the company has reduced its losses in a sequential manner. There are a number of important factors that drove Paytm’s growth in the first quarter were the increase in bill payment due to the increase in MTUs, a rise in loan disbursements as well as a rise in subscription revenues due to an increasing number of payment platforms.

In July, the month that ended the total number of Paytm devices in stores of merchants across the nation was 4.1 Mn. That was 3.8 Mn by the end of the June quarter 2022. It also represents an increase of 3 million additional devices from July 2021.

“The widespread adoption of mobile devices which in turn drives greater payments, subscription revenue and merchant loans distribution” The startup said.

In actual fact its total merchant payments volume continues to increase. Paytm’s gross value (GMV) for July 2022 amounted to around 1 1.06 Lakh Cr ($13 Bn) which is an increase in 82% YoY over 0.58 Lakh Cr in the previous month. 0.58 Lakh Cr seen in the same period last year.

In Q1 FY23 the company registered the GMV increase of 101 percent YoY, which was three INR Lakh Cr.

Paytm Shares Sink

Despite reporting continuous expansion in its overall operational efficiency, Paytm shares fell about 5 percent in value to the level of INR 786.55 on BSE at 2.50 pm IST. This was following an consulting company Institutional Investor Advisory Services India Limited (IiAS) requested shareholders of the company to vote against the idea of re-appointing Vijay Shekhar Sharma as the company’s CEO.

In advance of the annual general meeting of August 19th, the consultancy firm has voiced its concerns about Paytm chief Sharma’s recent promises to make the company profitable, but which haven’t been implemented. “We think the board needs to look at professionalizing the management of the company,” IiAS said.

Paytm shares were up more than 6% at the start of the week, following the Q1 results for FY23.

In the first trading hour on Friday, the shares plunged up to 6.1 percent to 775 INR.

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