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Paytm's net losses drop by 78 percent, inching closer to profitability with Q4 FY23

Paytm's Q4 FY23 Revenue Soars by 51% YoY to Reach Rs 2,334 Crore

6 May 2023


Kunal Tyagi

India produced 3X more unicorns than China in 2022.png
  • Paytm's Q4 FY23 revenue increased 51% YoY to Rs 2,334 crore ($310m), and overall revenue for the year rose 61% YoY to Rs 7,990 crore.

  • Paytm's growth was driven by an increase in gross merchandise value (GMV), merchant subscription revenues, and loan distribution through the platform.

  • The company's payment services remain its core business, with revenue reaching Rs 1,467 crore and payments profitability improving in Q4 FY23.

Paytm, the Indian fintech company owned by One97 Communications, has reported a 51% YoY increase in Q4 FY23 revenue, reaching Rs 2,334 crore ($310m), and a 61% YoY rise in overall revenue for the financial year, reaching Rs 7,990 crore. Paytm's net loss in Q4 FY23 was Rs 168 crore, down from Rs 761 crore the previous year and Rs 392 crore in Q3 FY23. The company's operating level returned a profit of Rs 101 crore in Q4, compared with a loss of Rs 368 crore in the same period in 2022.

The company's growth was led by an increase in gross merchandise value (GMV), with GMV in the March quarter up 40% YoY to Rs 3.62 lakh crore, as well as merchant subscription revenues and loan distribution through the Paytm platform. The company's subscription services for payment devices, such as Soundbox and POS machines, also saw strong adoption, with 68 lakh merchants paying Paytm subscriptions as of March 2023, compared to 29 lakh merchants in the same period the previous year.

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Paytm's loan distribution business has continued to grow, with loans amounting to Rs 12,554 crore distributed through the Paytm platform across its three loan product offerings in Q4 FY23. As of March 2023, 95 lakh borrowers have taken a loan through the company's platform. The company reported that the average ticket size for personal loans is currently around Rs 130,000, with an average tenure of 15 months.

Paytm reported that payments are their core business, with revenue from payment services reaching Rs 1,467 crore, a 41% increase in FY23, and payments profitability improved with Q4 FY23 net payment margin expanding 158% YoY to Rs 687 crore. The company also improved its payment profitability by bringing innovative products to its customers.

Analysts had expected Paytm to report strong growth in revenue and gross merchandise value (GMV) in Q4 FY23, with Citigroup estimating revenue at Rs 2,274 crore, up 48% YoY and 10% QoQ, and GMV expected at Rs 362 crore, up 40% YoY and 5% QoQ. Paytm's adjusted EBITDA was expected to be around Rs 86.6 crore, and its EBITDA margins were seen at 4%, 230 bps on a QoQ basis.

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