Paytm Q1 Results FY2023, Net Loss at Rs. 645.4 Crores

On 5th August 2022, Paytm announced its quarterly results for the first quarter of FY2023.

Key Highlights for Q1FY23:

- The company's revenue from operations grew by 89% YoY to Rs. 1680 crores, the key drivers were an increase in subscription revenues due to the growing number of payment devices, growth in bill payments due to growing MTUs, growth in disbursements of loans by our partners through our platform, and increase in Commerce revenues.

- The EBITDA stood at Rs. (275) crores with a growth of Rs. 57 crores YoY.

- The Net loss was reported at Rs. 645.4 crores

Business Highlights:

Payment Services:

- In Q1 FY 2023, the GMV at Rs. 3.0 Lakh Crores grew by 101% YoY as the company sustained growth in its monthly transacting users (MTU), which at 74.8 million grew by 49% YoY, driven by customer acquisition through UPI and expansion of its registered merchant base which at 28.3 million (an increase of 6.5 million compared to 21.8 million in Q1 FY 2022) GMV from MDR bearing instruments has grown 52% YoY. 

Payment Services to Consumers:

- In Q1 FY 2023, revenue grew by 73% YoY and 11% QoQ to Rs. 519 Crores as Paytm continues to grow the user base on its app for bill payments and other use cases.

Payment Services to Merchants:

- In Q1 FY 2023,  Revenue from Payment Services to Merchants grew by 67% YoY to Rs. 557 Crores, driven by the strong growth of MDR-bearing instruments GMV, and subscription revenues from its payments devices, with over 2.8 million devices added in the last 12 months taking its total deployed base to 3.8 million by the end of Q1 FY 2023. The revenue contracted marginally by 3% on a QoQ basis, primarily as it undertook account level rationalization among online merchants to focus on profitable GMV (revenue impact of Rs. 29 Crore).

Offline Payment Services to Merchants:

- Offline Payment Services to Merchants continued strong growth in payments device deployment with over 0.9 million devices added in the Q1 FY 2023, despite being conservative about the quality of merchants onboarded. Device merchants accounted for over 75% of merchant loan disbursals

Financial Services and Others

- In Q1 FY 2023, revenue from Financial Services and Others grew 393% YoY to Rs. 271 Crores and accounts for 16% of total revenues, up from 6% in Q1 FY 2022. The growth in revenue was primarily driven by 779% YoY growth in the value of loans disbursed. The QoQ growth in revenue was 61%, driven by an increase in Postpaid and Personal Loans disbursements. 

Loan Distribution:

- In Q1 FY 2023, the number of loans disbursed through its platform grew to 8.5 million, representing a growth of 492% YoY and 30% QoQ. The value of loans disbursed grew to Rs. 5,554 Crore, a growth of 779% YoY and 56% QoQ, thus highlighting an increase in the average value of loans disbursed.

Paytm Postpaid:

- The number of Postpaid Loans disbursed grew 486% YoY in Q1 FY 2023, while the value of Postpaid Loans grew 656% YoY

Personal Loans:

- The number of Personal Loans disbursed grew 887% YoY in Q1 FY 2023, while the value of Personal Loans grew 1,106% YoY. Average ticket size increased by 16% QoQ and is roughly Rs. 100,000 with an average tenure of 14 months

Merchant Loans:

- The number of Merchant Loans disbursed grew by 907% YoY in Q1 FY 2023, while the value of Merchant Loans grew 1,031% YoY. The average ticket size is roughly Rs. 140,000, with an average tenure of 12 months

Commerce and Cloud Services:

- For Q1 FY 2023, revenues from Commerce and Cloud services went up by 64% YoY and 3% QoQ to Rs. 331 Crore.