Indian Government

Paytm loss widens to ₹778 crore in Q3; revenue jumps 89%


Fintech major Paytm Ltd’s consolidated net loss widened to 778 crore for the third quarter ending 31 December, 2021. 

The company had reported a net loss of 482 crore in the September quarter and 532 crore in the year-ago period.

Earlier during the day, Paytm shares rose 0.89% to close at 952.90 apiece on NSE.

Revenue from operations, meanwhile, jumped 89% to 1,456 crore for the quarter under review, driven by growth in merchant payments through MDR bearing instruments, new device subscriptions and loan disbursements. The same was 772 crore in the last year period.

In a late earnings update on Friday, Paytm said it is well funded with net cash, cash equivalent and investable balance of 10,215 crore, as of December 2021.

The gross merchandise value (GMV) grew 123% year-on-year at 2.5 lakh crore during the third quarter, led by growth in online and offline merchant base, increase in the user engagement, and impact of the festive season.

GMV, a key metric for fintech companies, is the rupee value of total payments made to merchants through transactions on various platforms of Paytm over a time period. It excludes any consumer-to-consumer payment service such as money transfers.

The contribution profit as a percentage of revenue improved to 31.2% of revenue in third quarter from 8.9% a year ago.

Meanwhile, the real contribution profit for third quarter saw a growth of massive 560% year-on-year, Paytm said, at 454 crore.

Average MTU (Monthly transacting users), the number of unique users with at least one successful payments transaction in a month, has grown by 37% year-on-year to 64.4 million in reporting quarter.

Paytm, which made a dismal debut on stock markets in mid-November, has seen its share price more than halve against the issue price on repated concerns over valuation from analysts.

Segment wise, revenue from payment services to consumers was up 60% year-on-year to 406 crore, driven by growth in transaction volumes of Paytm Payment Instruments and introduction of new use-cases. The quarter-on-quarter growth was 15% primarily due to increased adoption of new use cases on the platform.

Revenue from financial services and others grew by 201% year-on-year to 125 crore in Q3 FY22. The growth was primarily driven by 366% rise in the value of loans disbursed.

Loans worth 2,181 crore were disbursed through Paytm in the December quarter, up 366% year-on-year and 73% quarter-on-quarter and the number of loans increased to 4.4 million

On the expenses side, Paytm’s marketing and promotional expenses rose to 283 crore as against 211 crore in the year-ago period, while the company’s total expenses rose surged 72% to 2,317 crore during the reporting period.

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