Paytm’s revenue surges by 51% YoY to reach Rs.2,334 cr for Q4 FY23
Paytm, the leading payments and financial services company announced impressive growth in its fourth quarter of FY23, ending the financial year on a high note.
In Q4 FY23, the company’s revenue surged by 51 percent (year-on-year) to reach Rs.2,334 crores, while the full-year revenue increased by 61 percent YoY to Rs.7,990 crores, making it the highest-earning new-age company.
In Q4, Paytm further grew its operating profit by Rs.234 crores. In Q4, Paytm’s EBITDA before ESOP costs, excluding UPI incentives, rose to Rs.101 crore, a significant improvement from the previous fiscal’s Q4 figure of (Rs.368 crores).
This was achieved by the increased pace of monetization, better cost management, and higher operating leverage, said the company.
In the fourth quarter, Paytm’s payments revenue grew by 41 percent YoY to Rs.1,467 crores.
According to the company, including only the current quarter’s UPI incentive only, the net payments margin for Q4 FY 2023 was Rs.554 crores, up 107 percent YoY. In the current fiscal year, the net payments margin increased 2.9x to Rs.1,970 crores, demonstrating the profitability of the payment business, despite the higher share of UPI.
Excluding prior quarters’ UPI incentive, payments revenue grew 28 percent YoY. For FY23, led by increase in payment volume, and higher subscription revenue from device merchants, the payment revenue increased 44 percent to Rs.4,928 crores in FY23.
Paytm significantly increased its loan distribution business with revenue from financial services and others growing 183 percent YoY to Rs.475 crores in Q4 FY 2023 and by 253 percent in FY 2023 to Rs.1,540 crores. This was largely on account of a 364 percent increase in the value of loans disbursed through its platform, said the company.
The company continues to monetize Paytm app traffic in its commerce and cloud segment by providing marketing services to its merchants. In Q4 FY 2023, Paytm’s commerce and cloud revenue grew by 23 percent YoY to Rs.392 crores.
In FY 2023, commerce and cloud revenue grew by 38 percent to Rs.1,520 crore.
Paytm’s contribution margin improved from 30 percent in FY 2022 to 49 percent in FY 2023, due to improved payments profitability, and growth in the high-margin loan distribution business.
The company’s user engagement on the platform continues to grow, with average Monthly Transacting Users (MTU) for Q4FY23 increasing by 27 percent YoY to 90 million, indicating a growing adoption of digital payments by consumers and merchants in India.
The company’s Gross Merchandise Value (GMV), which stood at Rs.3.62 lakh crores for Q4 FY 2023, saw an increase of 40 percent YoY.
The company’s loan distribution business, in partnership with marquee lenders, has continued to scale, with the total number of loans growing to 1.2 crores in Q4FY23, up 82 per cent YoY, and the total value of loans amounting to Rs.12,554 crores, registering a growth of 253 per cent YoY.
Paytm claims its vision is to onboard 10 crore merchants with over 50 crore payment users in the near future. The decacorn has seven lending partners and they aim to enlist 3-4 partners in FY 2024.
[With Inputs from IANS]
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