Shares of One97 Communications (Paytm) gained in Wednesday’s trade after the new age company said its merchant payment volumes (GMV) grew 40 per cent for the March quarter while its average monthly transacting users (MTU) rose 27 per cent YoY to 9 crore during the same period, reflecting continued expansion of customer base.
In a filing to BSE, Paytm said it saw continued growth in payments and loan distribution business. In March, the company deployed 68 lakh devices and saw loan disbursements of Rs 4,468 crore through the Paytm platform.
“Subscription devices like Soundbox and POS machines continue to see increased acceptance by merchants, driving additional payment monetization for us. Number of
merchants paying subscription for payment devices has reached 6.8 million as of March, an increase of 10 lakh in the quarter,” Paytm said.
Following the development, the stock rose 1.31 per cent to hit a high of Rs 647.35 on BSE.
GMV for the March quarter stood at Rs 3.62 lakh crore ($44 billion), up 40 per cent. Paytm said its focus over the past few quarters continued to be on payment volumes that generate profitability, either through net payments margin or from direct upsell potential.
“Our loan distribution business (in partnership with our lender partners) continues to gain scale with disbursements of Rs 4,468 crore ($544 million, up 206 per cent YoY) and 4.1 million loans (up 63 per cent YoY) disbursed in the month of March 2023 through the Paytm platform,” it said.
Paytm said its payments consumer and merchant base offers a large addressable market, thereby providing a long runway for growth.
Paytm said its subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution.
Also read: Reliance Industries, Bajaj Finance, JSW Steel, RailTel among stocks to watch out for today
Also read: IndusInd Bank shares: What analysts said on stock post March quarter business update
