Paytm’s parent company, One97 Communications, reported rapid growth in its lending business on Wednesday, with loan disbursements in the April-May period jumping 471% from the corresponding period a year ago. Paytm shares gained on the company’s strong operational update.
The disbursement in value amounted to Rs 3,576 crore in the first two months of this quarter, which represents a growth of 829% compared to last year. “We are also seeing increases in average ticket size due to a surge in personal loan activity in particular,” Paytm said.
On the merchant payments side as well, Paytm saw strong growth, with merchant payment volume growing by 100% year-on-year with gross market value processed reaching Rs 1.96 lakh crore in the last two months.
Overall, Paytm said users transacting monthly on its super app grew 48% on a yearly basis to 74.3 million in the current quarter.
Further, in its statement, the company said that Paytm Super App, with its comprehensive offerings, is the one stop destination for the diverse payment needs of millions of users in India.
It also led to new milestones in user engagement, with the average number of monthly transactional users (MTU) for the two months ending May 2022 at 74.3 million, recording 48% growth in year-on-year.
In offline payments, Paytm maintains its leadership with the deployment of 3.4 million devices in merchant stores across the country. Paytm said, “High device adoption also correlates with an increase in the number of merchants eligible for loans from our platform.”
Shares of Paytm have remained under pressure since their stock market debut in November 2021. The stock has fallen more than 70% from its issue price of Rs 2,150 per share.
That said, the stock has recovered over 20% after recently hitting its 52-week low at Rs 510.1.
Shares of Paytm rose 1.5% to Rs 615.6 on the National Stock Exchange.
Paytm stock hit a new all-time low of Rs 510.1 each last month, since then the stock is up over 22%. The Paytm Super app saw 48% year-on-year growth with the average number of monthly transaction users (MTU) for the two months ending May 2022 at 74.3 million.
Paytm stock may stay between 550 and 700 levels in the current scenario, Ravi Singh, vice president and head of research, Share India Securities, told FinancialExpress.com.
About the company
Paytm is India’s super payment app offering consumers and merchants the most comprehensive payment services. Paytm enables commerce for small merchants and distributes various financial service offerings to its consumers and merchants in partnership with financial institutions.
One 97 Communications is the parent company of fintech major Paytm. It reported a consolidated net loss of Rs 763 crore in Q4 FY22, higher than the net loss of Rs 441.80 crore in Q4 FY21.
Its consolidated operating income increased by 89% year-on-year to reach Rs 1,540.90 crore in the quarter under review, compared to Rs 815.30 crore in the corresponding quarter last year.