One97 Communications, which owns Paytm brand, continues to witness accelerated growth in its loan distribution business with the value of loans disbursed in October 2022 up 387 per cent year-on-year to ₹ 3,056 crore.
The number of loans disbursed grew 161 per cent year-on-year to 3.4 million loans in October 2022, the company’s latest operating performance update for October 2022 filed with stock exchanges showed.
Disbursements through Paytm’s platform clocked an annualised run rate of ₹37,000 crore in October 2022.
Paytm said that it continues to seek growth and upsell opportunities as low penetration supports future growth potential, while it works with partners to remain focused on the quality of the book.
“We are now scaling up lending distribution which can bring financial inclusion to hundreds of millions of people in our country. Due to the huge demand for lending, our low penetration and the compounding nature of our lending journey, we are extremely optimistic about the prospects of our lending business,” Vijay Shekhar Sharma, Founder & CEO, Paytm said in a letter to shareholders. He also said that the company was on the right path to profitability and free cash flows.
Paytm said that consumer engagement is at its highest on its app with average monthly transacting users at 84.0 million for October, up 33 percent .
Paytm has so far deployed 5.1 million devices at merchant stores.
“With our subscription as a service model, the strong adoption of devices drives higher payment volumes and subscription revenues while increasing the funnel for our merchant loan distribution,” Paytm said.
The total merchant GMV processed through Paytm platform for the month of October 2022 aggregated to ₹ 1.18 lakh crore ($14 billion), marking a year-on-year growth of 42 per cent, partly due to festive season.