Paytm sees 418% increase in value of loans disbursed in Oct; to declare Jul-Sep results on Nov 27

Financial services firm Paytm on Sunday said it saw a 418 per cent year-on-year (YoY) increase in value of loans disbursed through it in October at Rs 627 crore, while the number of loans disbursed grew 472 per cent YoY to 13 lakh.

The recently-listed company also said that its board will meet on November 27 to consider and approve the financial results for the quarter and half year ended September 30, 2021.

"Our financial institution partners disbursed a total of 1.3 million loans in October 2021 aggregating to a total disbursal of Rs 6,270 million ($84 million), implying a 472 per cent increase in numbers of loans disbursed Y-o-Y and 418 per cent increase in value of loans disbursed Y-o-Y," the company said in an exchange filing.

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Due to the cautious approach in making new disbursements during the second wave of the COVID-19 pandemic in May and June, Paytm said it processed a total of 14 lakh loans through its financial institution partners in Q1 FY 2022. However, it saw continued recovery in the segment as the financial institution partners' disbursal almost doubled to over 28 lakh loans in Q2 FY 2022.

"The October 2021 month saw continued increase in adoption across our different financial services products. The lending business, continued to show very strong growth as a result of rapid scale up of all of our lending products, including Postpaid, consumer loans and merchant loans," it said.

On payments business, Paytm said the gross merchandise value (GMV) processed through its platform during October rose 131 per cent YoY to approximately Rs 83,200 crore, driven by festive season spends, as well as an increase in number of merchants and consumers, adoption of new products, transactions for both online and in-store merchants, and in deployed devices.

The monthly transacting users (MTU) grew 35 per cent YoY to 6.3 crore during the month. The company classifies MTU as unique users with at least one successful transaction in a particular calendar month.

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"As disclosed in our prospectus, our MTU have consistently grown in FY 2021 and in the first two quarters of FY 2022 and the trajectory has continued in October 2021 with 63 million MTUs, growth of 35 per cent Y-o-Y over the 47 million MTUs in October 2020," it said.

The GMV/MTU ratio rose 71 per cent to Rs 13,217 during October. The ratio represents one facet of its consumer and merchant engagement, according to Paytm.

The number of devices deployed across merchant base also grew to approximately 14 lakh as of October 31, 2021 from 9 lakh on June 30 and 13 lakh on September 30.

Paytm began its journey as a public company with a 27 per cent fall over its IPO (initial public offering) price on Thursday. The company's IPO price was Rs 2,150, and the stock closed at Rs 1,560 apiece at the end of the day.
 
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