India’s digital payments company Paytm reported a 76% jump in second-quarter revenue, helped in part by strong credit growth, while the company reiterated that it will be profitable by September 2023. Paytm’s parent, One 97 Communications Ltd, said revenue rose to 19.14 billion Indian rupees ($233.81 million) in the July-September quarter from 10.86 billion rupees a year earlier.
Consolidated net loss widened to 5.71 billion rupees from a loss of 4.73 billion rupees a year earlier as costs related to employee benefits and payment processing fees rose, the company said in an exchange filing. The revenue growth in the reported quarter was lower than the 88.5% growth Paytm posted in the first quarter.
Revenue from the company’s core business of payment services — consumers and merchants using the app and subscription devices — rose 55.6% to 11.73 billion rupees in the second quarter. Its net payment margin, or payment revenue less processing costs, rose 15% to 4.43 billion rupees from the immediately prior quarter. Paytm’s average monthly transaction users grew by 39% over the previous year.
Revenue from the company’s fast-growing financial services business — primarily buy now and pay later, personal and business loans — nearly quadrupled to 3.49 billion rupees. Loan disbursements rose to 73.13 billion rupees in the reported quarter, the company said last month. The company said it does not have a “fixed timeline” for when Paytm Payments Bank will be allowed to accept new customers following the ban by India’s central bank in March. The company added that the central bank’s observations were largely about strengthening IT outsourcing processes and operational risk management.
