Fintech major Paytm disbursed 6 million loans in the months of July and August, registering a growth of 246 percent year-on-year. The cumulative value of these loans disbursed jumped 484 per cent to Rs 4,517 crore (approx $568 million).

Total loans disbursed by financial institution partners through Paytm’s platform include both consumer loans and merchant loans.

“Our loan distribution business, in partnership with top lenders, continues to witness accelerated growth with disbursements through our platform now an annualized run rate of over Rs 29,000 crore ($3.6 billion) in August,” Paytm stated in its latest operations update.

“We continue to see ample growth and upsell opportunities in this business and are focusing on the quality of the book,” it added.

Paytm stock was trading almost flat, up 0.78 per cent at Rs 714.10 on BSE.

GMV and Offline Growth

Besides sustained growth in its credit business, the Vijay Shekhar Sharma-led company also expanded its presence in offline payments, with total devices deployed at merchant stores reaching 4.5 million in August 2022. “With our subscription as a service model, the strong adoption of devices drives higher payment volumes, subscription revenues as well as merchant loan distribution,” Paytm explained.

Commenting on the growing acceptance of Paytm devices at the point-of-sale (PoS), Sharma noted in the company’s FY22 annual report, “We see that merchants intuitively understand the value of digital payments; and increasingly, they are ready to pay for technology that makes digital payments easier and trusted.”

“We are increasingly seeing merchants opt for devices, whether Paytm card machines or Soundbox, on their counter, and this adoption of devices is almost certainly going to further accelerate,” he added.

Paytm’s gross merchandise volume (GMV) also clocked steady growth. For the two months ended August 2022, it was up 72 per cent YoY to Rs 2.1 lakh crore (nearly $26 billion). This was, in part, driven by the rise in monthly transacting users (MTU) on the fintech platform.

MTUs, which include users who’ve completed at least one successful transaction in a calendar month, reached nearly 79 million at the end of August, up 40 per cent from a year-ago period. Paytm claimed that “consumer engagement is at its highest on the super-app” right now.
Source: BusinessToday
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