Paytm’s reported Net loss for Q3 FY 2022 Increased to 778 Crores
Paytm Ltd’s a digital payments company, consolidated net loss for the third quarter ended December 31, 2021 increased to 778 crore.
Paytm Q3 results: In the third quarter, revenue from operations increased by 89 percent to Rs 1,456 crore.
Paytm’s core business is payment transaction. The Q3 results were driven by higher number of digital transactions on the platform in the quarter, both in terms of total active users and number of active users as well as higher merchant transactions. Paytm has recently integrated the Paytm Wallet in the Android and iOS mobile app to enable faster mobile pay. We are looking forward to the festive season in the quarter and expect to continue to see growth across all categories.
One97 Communications, the parent company of financial services business Paytm, announced that its net loss increased by 11% to Rs 482 crore in the second quarter ended September 30, 2021, compared to the same time the previous year.
Paytm, reported a larger net loss for the fiscal second quarter, despite a roughly 64 percent increase in consolidated revenue from operations.
The company reported Rs 1,086 crore in revenue from operations in a stock exchange filing.
Paytm’s consolidated revenue from operations climbed by about 88% to Rs 1,456.1 crore in the reporting quarter, up from Rs 772 crore in the same previous quarter last year .
Paytm’s new platform now supports over 100,000 merchants and accounts for around 70% of the digital payments transaction. This represents an increase of over 20,000 merchants from a year ago and 5,000 unique merchant IDs. they now have 20 million monthly active users.
Growth in merchant payments via MDR bearing instruments, new gadget subscriptions, and loan disbursements are all driving this trend.
Paytm’s merchant transaction is primarily from small and medium businesses. Its merchant-to-merchant business increased substantially in the quarter. Its payment volume per merchant reached the highest level in the history of our platform. Paytm has ended the quarter with a stronger balance sheet. It now has raised close to $1.3 billion from a number of strategic investors, including Alibaba Group Holding Limited (‘Alibaba’), Sequoia Capital, Ratan Tata, China’s Tencent Holdings Ltd (‘Tencent’), and Tiger Global Management. We continue to make progress on monetizing our platform with our product strategy that includes merchant acquisition and in-app marketing. Paytm is also working on new features on the platform to build on its growth.
The third quarter financial results were in line with the company’s guidance range. It was the largest quarter in Paytm’s history and in the history of the Indian internet industry. However, as the COVID-19 situation continues to worsen, and global lockdowns impact the consumer economy and consumer adoption, the Paytm business remains a positive contributor.
From 8.9% in Q3 FY21 to 31.2 percent in Q3 FY22, the contribution profit (defined as income from operations less payment processing charges, promotional cashback and incentives, and other direct expenditures) increased to 31.2 percent of revenue.
From 63 percent of revenues in Q3 FY21 to 39 percent of revenues in Q2 FY22, the EBITDA margin improved to 27 percent of revenues in Q3 FY22. The number of unique users with at least one successful payment transaction in a month, known as average monthly transacting users (MTU), increased by 37% YoY to 64.4 million in Q3 FY22.
Paytm is working on a digital platform to support the Paytm economy in the COVID-19 environment, leveraging the Paytm ecosystem and its payments solutions, data-driven insights and technology to help consumers and businesses to connect and make payments at a time and place of their choice. Paytm’s revenue from operations in the third quarter grew 89 per cent year-over-year to ₹1456 crore. This growth rate is lower than the double-digit growth rates during the same quarter last year.
According to the firm, Its consumer base has grown to over 350 million users, and merchant base has grown to 24.9 million (from 20.0 million a year ago). This fiscal year, monthly transacting users (MTU) increased steadily. In Q3 FY22, the average monthly transactional users (MTU) on Paytm’s platform were 64.4 million, up 37 million year over year and 12 million quarter over quarter
Paytm claimed it is fully funded with a net cash, cash equivalent, and investable balance of 10,215 crore as of December 2021 in a late financial statement on Friday.
Edited and published by Ashlyn Joy