Paytm CEO says “company on right path to profitability” as laon disbursement jump 387% in October
Biznextindia : One97 communications, the company that operates fintech platform Paytm has reported 387 percent growth in loan disbursements to Rs. 3056 crore in October, the company said on Monday.
“The value of loans disbursed grew 387% y-o-y to Rs 3,056 Cr ($407 million), while the number of loans disbursed grew 161% y-o-y to 3.4 million loans in the month of October 2022. We continue to seek growth and upsell opportunities as low penetration supports future growth potential, while we work with our partners to remain focused on the quality of the book” the company said.
“After our recent quarterly reports which showed strong operating leverage and reduction in EBITDA losses, we are now excited about the next year of our journey, as we get close to EBITDA profitability and free cash flow generation” said Paytm CEO Vijay Sekhar Sharma.
“The payment revolution continues in India, with merchants and users enthusiastically adopting digital payment technology. The government incentives to UPI payments and merchants’ adoption of our devices and subscription product, is making payments increasingly monetizable and profitable for us. In parallel, 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 in our country, our low penetration and the compounding nature of our lending journey, we are extremely optimistic about the prospects of our lending business” he added.
Paytm has 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.
The total merchant GMV processed through the platform for the month of October 2022 aggregated to Rs 1.18 Lakh Cr ($14 billion), marking a y-o-y growth of 42%, partly due to festive season. As we have mentioned before, over the past few quarters, our focus is only on volumes that generate profitability for us, either through net payments margin or direct upsell potential.