New Delhi, Nov 27, : , Paytm, India’s largest digital ecosystem for merchants and consumers, has released its second quarter earnings report.The digital payments and financial platform saw its operations revenue grow by 64% Y-o-Y, to Rs 10.9 Billion in Q2 FY 2022.This was due to a 52 percent increase in non-UPI payment volume (GMV), and more than three times growth in other revenue. The contribution profit of the company grew to Rs.2.6 billion in Q2 FY2022, a 592 percent increase year-over-year.From 5.7 percent the previous year, the contribution margin rose to 24.0%.
Paytm saw an increase in Adjusted EBITDA margin from (64% of revenues Q2 FY 2020 (Rs 4,255m) to (39% of revenues) in Q2 FY 2022 (Rs 4255 million) and increased investments in technology, merchant base expansion (Rs 4,267m).
“The growth in non-UPI GMV has driven continued revenue growth in payments, and our UPI-led growth in payment volume is translating into a significant increase of our financial services offerings.
We are driving widespread adoption of digital payments and financial services in India through our efforts to increase penetration.Paytm saw a strong second quarter in FY22.
This is testimony to the strong, two-sided ecosystem that we have created of merchants and consumers.The company’s management spoke out about the second quarter earnings.”We have maintained the growth momentum of our payments services business, increased our financial services business aggressively and on our way to preCovid volumes for Commerce and Cloud service,” they said.
Paytm’s Gross Merchandise Value (GMV), growth was driven by active user involvement & adoption across businesses.GMV for Q2FY2022 at Paytm was Rs 1,956 Billion, an increase of 107 percent Y-o Y.The growth momentum continued in October 2021 with a GMV of Rs 832 Billion, an increase of 131 percent Y-o Y.
The average monthly transacting user (MTU) of the company in Q2 FY2022 grew 33 percent Y-o Y to 57.4million.This trend has continued in October 2021, with 63,000,000 MTUs, a 35 per cent increase Y-o Y, compared to 47million MTUs in Oct 2020.The Q2 FY 2022 Monthly GMV per Transacting user grew 55% Y-o-Y, to Rs 11,369.
Paytm, which is focusing on growing its financial service platform, saw its revenue from financial services and payments grow by 69% Y-o Y to Rs 8,426 millions, while Commerce and Cloud Services revenue grew 47% Y-o Y to 2,438million.
The company’s lending business saw a significant boost with 714 percent year-on-year growth to more than 2.8 million loans in Q2 FY 2022.Due to the rapid expansion of all company’s lending products including Postpaid (Buy Now-Pay Later), consumer loans, and merchant loans, the lending business continued to grow strongly.The October 2021 disbursal by the company’s financial institution partners was around 1.3 million, representing a 472 percent increase in loans disbursed in Y-o–Y and aggregating into a total disbursal amount of Rs 6,270 millions.This translates to a 418 percent increase in the value of loans disbursed in Y-o–Y.
Paytm’s merchant base grew from 18.5 million Q2 FY 2021 to 23 million Q2 FY 2022.From 0.3 million in Q2 FY 20201, the devices deployed base grew from 0.3 million to 1.3million in Q2 FY 2022.The company stated that we continue to see strong adoption of our devices by merchant partners.Our deployed base has increased to approximately 1.42 million as of October 2021.
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