One 97 Communications, which owns the Paytm brand, on Monday said its lending business grew a whopping 779 per cent year-on-year in value terms in June 2022 at ₹5,554 crore (₹632 crore). The total number of loan disbursals in June 2022 grew 492 per cent to 8.5 million loans (1.4 million in June 2021).
The strong operating performance update for June 2022 edged up the stock price by over 2 per cent to ₹714 in early trade on Monday morning.
“Our lending business (in partnership with top lenders) continues to witness accelerated growth with disbursements through our platform now an annualised run rate of over ₹24,000 crore in June. The rapid growth of our lending products brings us an attractive profit pool. We are also seeing increases in average ticket size due to the scale up of the personal loans business in particular,” Paytm said in a filing with the stock exchanges on its update on the operating performance for June 2022.
NEW RECORD OF MTUs
The average monthly transacting users (MTU) on the Paytm Super App for the quarter ended June 2020 stood at 74.8 million, up 49 per cent on a year-on-year basis. For the month of June alone, the MTU stood at 75.9 million
“The Paytm Super App continues to see heightened consumer engagement for the company’s comprehensive payment offerings. We continue to achieve new records in user engagement,” the company’s update said.
Meanwhile, the total merchant payment volumes (GMV) processed through the Paytm platform for the quarter ended June 2022 aggregated to ₹2.96 lakh crore, reflecting a year-on-year growth of 101 per cent.
Paytm also said it continues to strengthen its leadership in offline payments, with deployments of 3.8 million devices at merchant stores across the country. The strong adoption of devices also has a correlation with the rise in merchants eligible for loans from its platform, the company added.
It may be recalled that JP Morgan had last month reinstated an overweight rating on One 97 Communications with a March 2023 price target of ₹1,000.
Citi Research had last month resumed coverage of One 97 Communications with a Buy Rating and target price of ₹915. It said Paytm is showing a steady improvement in payments monetisation and is scaling up financial services rapidly.