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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