Discover Paytm Q2 Results 2023, Revenue Model, Major Points

Discover Paytm Q2 Results 2023, Revenue Model, Major Points

Indians have embraced digital payment wholeheartedly and it is because of platforms like India’s Paytm that digitalization in this genre has become seamless. One of the country’s first start-ups to go public, Paytm has announced an increase in revenue by 32% for the second quarter of the FY 2023-24. According to Paytm Q2 results 2023, net loss has now shrunk to INR 291 crores in comparison to INR 571.1 crores in the September quarter of 2022.

PrimeNewsly brings for its readers a detailed reporton Paytm Quarterly Results.

About Paytm Company:

A financial technology company, Paytm was founded in 2010 by Vijay Shekhar Sharma. Based in Noida under One97 Communication, Paytm offers mobile payment services to its users. All they need to do is scan the QR code or punch the mobile number and the receiver will get the payment. Paytm Q2 results for the financial year 2023-24 report that the total revenue during the quarter was INR 2519 crore and this is 32% more than the figures for the same quarter last year. In 2022, Paytm Q2 results were INR 1914 crore.

Paytm Revenue Model

Paytm is the pioneer of mobile payments in the country. Paytm started as a means of providing a platform for online payments but has grown to be a technologically advanced financial service company where not just money transfers are made possible, but a plethora of other services are also provided.

Paytm revenue model rests on 2 parameters:

• Payment processing
• Subscription revenues

Paytm Revenue Model can best be summarized in the following points:

• By monetizing the application traffic, Paytm has penetrated into the lives of the Indians and this is how it generates revenue.
• Services like Paytm wallet, UPI, mobile phone recharge, Fastag, utility bills, fees, rent, UPI etc. are some of the main sources of Paytm revenue.
• Paytm offers merchants to sell tickets online, advertise and offer discounts and loyalty bonuses. This ultimately helps Paytm build on its revenue by leveraging strategically with the merchants.
• Paytm revenue model helps it to make money through UPI and non-UPI payments.

Paytm Q2 results today (as of 23 Oct 2023)

• On Friday, Paytm Q2 results 2023 were released and as per the official statement, Paytm revenue growth has been 32% in this quarter and the losses have also narrowed to INR 291 crores from INR 571 crores.

• Revenue at the core business has grown by 28% year on year to INR 1523 crore.
• Payment profitability has improved with net payment margin which has expanded to 60% year on year ( INR 707 crore)
• Financial services revenue in Paytm quarterly results show that the loan business has increased by 64%. Postpaid loans distributed grew 44% y-o-y while the value of such loans grew by 122% y-o-y. The value of personal loans distributed has grown to INR 3927 crore which is 91% y-o-y and the number of such loans has grown by 27% y-o-y.
• Paytm Q2 results have revealed that merchandise loans distributed by grown to 130% year on year and the value of such loans has grown to INR 3275 crore which is 171% y-o-y.
• Operating profit as revealed in Paytm Q2 results stands at INR 153 crore.
• Gross Merchandize Value has grown 41 % year on year to INR 4.5 lakh crore.
• The payment processing margin is at the higher end of 7-9 bps because of improvement in payment processing and an increase in GMV.

Paytm revenue growth for financial services has been INR 571 crore.

Starting our earnings call for Q2FY24! Our senior management will give an overview of our growth and achievements in the last quarter!#PaytmKaro pic.twitter.com/q8Slzaq9SI

— Paytm (@Paytm) October 21, 2023

Highlights of Paytm Quarterly Results 2023

• EBITDA before ESOP cost is now INR 153 crore.

• Paytm revenue growth jumped 32% to INR 2519 crore in Q2.
• Paytm loss narrows owing to the increase in loans distributed through the platform, increase in GMV and merchant subscription revenues.
• Loans distributed by Paytm stand at INR 16211 crore which is more than double.
• Core profit in Q1 of 2023 was INR 84 crore.
• Improvement of INR 319 crore in EBITDA before ESOP has been reported in Paytm Q2 results.
• Merchant subscriptions as of 30.09.23 stand at 92 lakh, increasing 44 lakh year on year and 14 lakh quarter-on-quarter.
• The number of people who have taken loans through Paytm has increased to 1.18 crore over the last 1 year.

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Frequently Asked Questions

Which are the top 3 UPI players in India?

• Paytm

• PhonePe
• Amazon Pay

Is Paytm loss making company?

At the consolidated level, Paytm is a loss-making company, though the loss for Paytm Q2 was INR 292 crores in comparison to INR 571.5 crores for Q2 in 2022.

What is the average ticket size of the loan taken from Paytm?

The average loan amount is INR 165000 for a duration of 16 months.

What is Paytm investor loss after the Paytm Q2 results 2023?

After Paytm net loss of INR 291 crores was reported, the shares fell by 3%. The price of Paytm share today is INR 953.

Is Paytm loss or profit making company?

Paytm is still a loss making company, though the amount of loss has now shrunk to INR 291 crore from INR 571 crore in Q2 last year.

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Conclusion

Paytm loss 2023 has shrunk to INR 291 crores owing to deeper penetration and a myriad of services provided by the financial service company.

An increase in default rates and a rise in non-performing loans club together to result in low profitability. However, the pioneer of digital payments has transformed the payment mechanism in the country. Let’s wait for the Q3 results.