One97 Communications, which owns Paytm brand, on Monday said its loan disbursements grew 169 per cent in April-May 2023 at ₹9,618 crore.

In May 2023, the total loan disbursements stood at ₹5,502 crore. This was higher than disbursements of ₹ 4,115 crore in April 2023.

“Our loan distribution business (in partnership with large lenders) continues to witness robust growth with total disbursements through our platform for the quarter to date (for April and May 2023) growing 169 per cent y-o-y to ₹9,618 crore ($1.2 billion)”, Paytm said in its latest operating performance update for the month of May 2023, filed with the stock exchanges.

As many as 85 lakh loans have been disbursed in April-May 2023, a year-on-year growth of 54 percent. 

“We continue to see growth in distribution of postpaid and personal loans. We have partnered with large NBFCs and banks and we continue to focus on quality of loans distributed through our platform. We currently have 7 lending partners and we aim to onboard 3-4 partners in FY24, Paytm said.

Gross merchandise value 

The total merchant gross merchandise value (GMV) processed through the Paytm platform for April-May 2023 stood at ₹ 2.65-lakh crore, reflecting a y-o-y growth of 35 per cent. 

For the quarter ended March 31, 2023, the GMV stood at ₹3.62-lakh crore, up 40 per cent over ₹2.59-lakh crore  for the same quarter in previous fiscal.

“Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential”, Paytm said.

Paytm sees continued expansion of consumer engagement on the Paytm Super App with average monthly transacting users (MTU) for April-May 2023 growing 24 per cent y-o-y to 9.2 crore.

Subscription for payment devices

The number of merchants paying subscription for payment devices has reached 7.5 million, an increase of 4 lakh in the month of May 2023.

“With our subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution”, Paytm said.

Net loss

It maybe recalled that Paytm reported a consolidated net loss of ₹168 crore for the quarter ended March 31, 2023. This loss was significantly narrower than the net loss of ₹761 crore in the same quarter last year and the net loss of ₹392 crore in the recent December quarter.

Paytm reported operating profitability in the December 2022 quarter, three quarters ahead of its earlier guidance of achieving this target by the September 2023 quarter.

For FY23, Paytm’s consolidated net loss came in at ₹1,776 crore, substantially narrower than the net loss of ₹2,396 crore in the previous fiscal.