One97 Communications Ltd, which operates the Paytm brand, claimed a 20% year-on-year (YoY) increase in average monthly transaction customers to 94 million in the July-August period, up from 79 million the previous year. Paytm provided loans of 5,517 crore ($667 million) through its lending platform in August 2023. Merchant payment volumes (GMV) for the firm climbed by 43% year on year to 3 trillion ($36.3 billion) in July-August 2023, up from 2.1 trillion in July-August 2022. Paytm's GMV of non-UPI instruments such as EMI and cards has continued to rise.

 

In July-August 2023, the company's loan distribution business (in collaboration with lending partners) expanded 137% year on year, with disbursements of 10,710 crore ($1.3 billion). In addition, the number of loans grew 47% year on year to 8.8 million in July-August 2023. As of August 2023, the corporation had deployed 8.7 million devices, a 4.2 million device growth year over year. “With our subscription-as-a-service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution," said the company.

 

Paytm stated that it wanted to calibrate growth over the last several quarters in order to tighten the credit quality of loans disbursed on its platform. The firm has effectively demonstrated improved credit quality for Paytm Postpaid, with the ECL (expected credit loss) decreasing to a range of 0.65% - 0.85% from a range of 0.75% - 1.00% in Q4 of FY23.

 

The business stated that it is still focused on the portfolio performance of its lending partners, and that growth may be slow until the industry outlook improves. Paytm's partners will benefit from high-quality outcomes, allowing the business to grow its lending arrangements.