The company's strong growth momentum continued during Q3 FY2023 driven by growth in merchant subscription revenue, growth in loan disbursements and momentum in the commerce business.
Paytm is witnessing a sustained growth in revenue, which reached ₹2,062 crore in the Dec-23 quarter, representing a 2.5x increase from ₹815 crore in Mar-21. The company's strong growth momentum continued during Q3 FY2023 driven by growth in merchant subscription revenue, growth in loan disbursements and momentum in the commerce business.
Vijay Shekhar Sharma, Founder & CEO, Paytm, in his letter to shareholders, said that Paytm achieved EBITDA before ESOP cost profitability in the third quarter without missing out on growth opportunities and keeping a close watch on all compliances as well as risk factors. Milestone achieved.
"I believe the opportunity in our country is huge for innovative payment and credit delivery solutions that provide us with quality revenue and an attractive profit pool," Sharma wrote.
India is witnessing a revolution in digital payments, but Paytm believes it is still early days for massive growth potential. The rise in Unified Payments Interface (UPI), cards, and EMI-based payments are yet to trickle down to the masses. National Payments Corporation of India (NPCI) is innovating with UPI to increase the adoption of digital payments. Enhanced user experience, interoperability and security have made Paytm UPI the most preferred payment option for Indians. Paytm has launched UPI LITE which allows instant, multiple small-value UPI payments of value less than or equal to ₹200. UPI LITE will further enhance the user experience and clean up their bank statements.
Paytm has introduced RuPay Credit Card on UPI to improve the payments experience for both consumers and merchants. Customers will benefit from the ease and increased opportunities to use their credit cards and merchants will benefit from increased consumption by becoming part of the credit ecosystem with the acceptance of credit cards using assets such as QR codes.
In the near term, Paytm believes India can have a potential of 100 million merchant entities and over 500 million payment customers. Subscriptions will be a huge market for paid and other services.
In terms of lending, they feel there is a long way to go, and are working on integration with large NBFCs and banks to leverage the full potential of small digital credit on the Paytm platform. In Q3 FY2023, the value of loans disbursed by their financial institution partners through Paytm's platform grew to ₹9,958 crore, a growth of 357% YoY and 36% QoQ.
Paytm is dedicated to manufacturing at scale with the highest focus on operational risk and compliance.
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