Paytm, India’s leading fintech firm known for pioneering QR, Soundbox, and mobile payments, has released its Q2FY24 results, once again showcasing impressive performance. The company reported a 32% YoY revenue growth, reaching ₹2,519 crores, despite the expectation that the revenue from the festive season would be reflected in Q3, compared to the previous fiscal year when it mainly fell in Q2.
More About Paytm’s Strong Growth
This growth in revenue can be attributed to increased GMV, merchant subscription revenues, and the growth of loans distributed through the Paytm platform. Paytm’s profitability is consistently improving, as seen in the Q2FY24 results. Major brokerage firms such as Goldman Sachs and Jefferies predict sustained revenue growth, as evidenced by these results.
The company’s EBITDA before ESOP improved significantly, nearly doubling to ₹153 crores compared to ₹84 crores in Q1FY24 (excluding UPI incentives). On an annual basis, Paytm posted an improved EBITDA before ESOP of ₹319 crores, with an EBITDA margin of 6%, reflecting an increase in contribution margin and operating leverage. The company has managed to increase EBITDA while focusing on growth. Quarter-on-quarter, the loss decreased by 49% YoY, from ₹571 crores to ₹292 crores.
Paytm’s platform remains a preferred choice for customers, offering comprehensive payment instruments such as UPI, Wallet, Postpaid, Debit & Credit Cards, etc. Average Monthly Transacting Users (MTU) for Q2FY24 grew by 19% YoY to 9.5 crore, reflecting the continued adoption of mobile payments in India. Consumer engagement on the Paytm app remains strong, with a 33% YoY growth in Paytm App GMV and a 32% YoY growth in Paytm App transaction volume. The Gross Merchandise Value (GMV) increased by 41% YoY to ₹4.5 lakh crores.
Paytm’s payments revenue grew by 28% YoY to ₹1,523 crores, with a net payment margin expanding by 60% YoY to ₹707 crores. The company’s innovation in devices such as Paytm Soundbox and Paytm Card Machines has contributed to significant growth in subscriber and merchant bases.
In the financial services and other sectors, Paytm’s revenue grew by 64% YoY to ₹571 crores in Q2FY24. The company reported an increase in the number of unique borrowers and loans distributed through its platform, signalling significant upsell opportunities. Paytm is positioned to facilitate digital loan collection through its app, fostering financial inclusion by enabling the disbursement and collection of small loans at minimal costs.
