New Delhi: The disbursements of Paytm increased by 169% year-on-year (y-o-y) to reach Rs 9,618 crore during the months of April and May, the parent company, One97 Communications said in a release. In terms of loan volume, there was a 54% y-o-y rise, with a total of 8.5 million loans disbursed.
The company reported a growth in the distribution of postpaid and personal loans, highlighting its partnerships with large non-banking financial companies (NBFCs) and banks. Paytm emphasized its commitment to maintaining the quality of loans distributed through its platform. At present, the company has seven lending partners, and it aims to onboard an additional three-to-four lending partner in the fiscal year 2023-24.
During the period in question, one of Paytm’s merchant distribution partners undertook a technology systems upgrade. This upgrade temporarily impacted the loan upsell to existing merchants of that particular partner. However, the system upgrade has now been completed, and the partner has resumed disbursing merchant loans. The release mentioned that there was some pent-up demand from April, which was met in May.
Paytm experienced a continued expansion of its consumer base, with average monthly transacting users increasing by 24% y-o-y to reach 9.2 crores (92 million) in the months of April and May. Merchant payment volumes also saw growth, rising by 35% y-o-y to reach Rs 2.7 trillion. Additionally, subscription merchants grew by 118% y-o-y to a total of 7.5 million as of May 2023.
Paytm attributed its leadership in payment monetization to the increased acceptance of subscription devices such as Soundbox and point-of-sale (POS) machines by merchants. The company expressed its ongoing focus on the quality of loans distributed through its platform.
Overall, Paytm has witnessed significant growth in its disbursements, loan volumes, consumer base, and merchant payment volumes. With strategic partnerships and a commitment to loan quality, the company aims to further expand its lending operations and solidify its position in the market.