For the third quarter ending 31 December, 2021, a consolidated net loss of Rs 778 crore was reported by Fintech major Paytm, and a massive increase of revenues by 89% to reach Rs 1496 crore.
Paytm shares rose 0.89% to close at Rs 952.90 apiece on NSE earlier during the day.
Revenues has seen a jump of 89%: But How?
Driven by growth in the merchant payments through MDR bearing instruments, loan disbursements and new device subscriptions, the revenue from operations has jumped to Rs 1,456 crore for the quarter under review as compared to same quarter previous year which was at Rs 772 crore. This is a remarkable 89% jump.
As of December 2021, the Fintech major said that they are well funded with net cash, cash equivalent and investable balance of Rs 10,215 crore. They revealed the same in the earnings update on Friday.
Led by the growth in the online as well as offline merchant base, increase in the user engagement, and impact of the festive season, the gross merchandise value (GMV) grew 123% year-on-year at Rs 2.5 lakh crore during the third quarter.
The Gross Merchandise Value (GMV) is a key metric in the fintech space, which is but the rupee value of total payments made to merchants through transactions on various platforms of Paytm over a time period. Any consumer-to-consumer payment service like money transfers are excluded in the same. From 8.9% in the previous year, the contribution profit as a percentage of revenue improved to 31.2% of revenue.
Paytm said that at Rs 454 crore, the third quarter saw a growth of massive 560% year-on-year in the real contribution profit.
In the reporting quarter, the number of unique users aka average MTU (Monthly transacting users) with at least one successful payments transaction in a month, has grown by 37% year-on-year to 64.4 million.
In the mid-November, the fintech major has made a dismal debut. The share price has more than halved against the issue price.
Driven by growth in transaction volumes of Paytm Payment Instruments and introduction of new use-cases, the segment wise revenue from payment services to consumers was up 60% year-on-year to Rs 406 crore.
Due to the increased adoption of new use cases on the platform, there was a 15% quarter-on-quarter growth.
Rise in Loans Disbursed, Marketing & Promotional Expense
In the Q3 FY22, the revenue from financial services and others grew by 201% year-on-year to Rs 125 crore. The 366% rise in the value of loans disbursed is the primary driver of growth.
In the December quarter, Paytm disbursed loans worth Rs 2,181 crore which is up by 366% year-on-year and 73% quarter-on-quarter. The number of loans have increased to 4.4 million. As against the Rs 211 crore in the year-ago period, the expense side viz the Paytm’s marketing and promotional expense rose to Rs 283 crore. During the reporting period, the company’s total expenses rose surged 72% to Rs 2,317 crore.
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