Paytm shares gain 1% post Q1FY24 business update, GMV Up 37% YoY

Shares of One97 Communications, parent of Paytm, gained 1 percent on July 5, after the company announced its first quarter business update for FY24.

At 1.05 pm, the stock was trading at Rs 850.05 on the National Stock Exchange, up 1.59 percent from the previous close.

One 97 Communications informed the exchanges on July 5 its Merchant Payment Volumes (GMV) for quarter ended June 2023 grew by 37 percent year on year (YoY) at Rs 4.05 lakh crore. GMV stands for gross merchandise value.

With an eye on profitability, the company said, “Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential.”

Paytm also witnessed a continued improvement in its consumer base, with average monthly transacting users (MTU) at 9.2 crore in Q1FY24, up 23 percent YoY. The company achieved a new milestone in merchant payments, with 79 lakh devices deployed as of June 2023, an increase of 4 lakh devices in the month and 11 lakh devices in the quarter.

In the business update Paytm stated, “Our leadership in payment monetization continues as subscriptions for payment devices like Soundbox and POS machines continue to see increased acceptance by merchants,”.

Paytm’s credit distribution business, in partnership with large lenders, recorded disbursements of Rs 14,845 crore, a YoY growth of 167 percent, with 1.28 crore loans (51 percent YoY growth) distributed.
Paytm currently has 7 active lending partners and it aims to onboard 3-4 partners this fiscal.

On June 30, it announced its loan distribution partnership with Shriram Finance Limited. The month-on-month loan distribution trend in June reflects the higher disbursal in May which included pent-up demand for merchant loans from April due to one of partners not disbursing due to upgrading of systems. For June alone, loan disbursements stood at Rs 5,227 crore.

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