Paytm Becomes India's Highest Earning New-Age Company with Rs 7,990 Crore Revenue in FY23

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Paytm Becomes India's Highest Earning New-Age Company with Rs 7,990 Crore Revenue in FY23
06 May 2023
5 min read

News Synopsis

Paytm's Strong Financial Performance in FY23

Paytm, the leading payments and financial services company in India, has reported impressive growth in its Q4 FY23, ending the financial year on a high note. The company's revenue surged by 51% YoY to reach Rs 2,334 crore in Q4, while the full-year revenue increased by 61% YoY to Rs 7,990 crore, making it the highest earning new-age company in India.

The growth in revenue was attributed to the increased pace of monetization, better cost management, and higher operating leverage. In the fourth quarter, Paytm's payments revenue grew by 41% YoY to Rs 1,467 crore. Excluding prior quarters' UPI incentive, payments revenue grew 28% YoY. For FY23, led by an increase in payment volume and higher subscription revenue from device merchants, payment revenue increased 44% to Rs 4,928 crore.

Paytm significantly increased its loan distribution business with revenue from financial services and others growing 183% YoY to Rs 475 crore in Q4 FY23 and by 253% in FY23 to Rs 1,540 crore. The company attributed this growth to a 364% increase in the value of loans disbursed through its platform.

In addition to its loan distribution business, Paytm's commerce and cloud revenue grew by 23% YoY to Rs 392 crore in Q4 FY23 and by 38% to Rs 1,520 crore in FY23. The company's contribution margin also improved from 30% in FY22 to 49% in FY23 due to improved payments profitability and growth in the high-margin loan distribution business.

Paytm's user engagement on the platform continues to grow, with the average Monthly Transacting Users (MTU) for Q4FY23 increasing by 27% YoY to 90 million. The company's Gross Merchandise Value (GMV) also saw an increase of 40% YoY to Rs 3.62 lakh crore in Q4 FY23.

Paytm's loan distribution business, in partnership with marquee lenders, has continued to scale, with the total number of loans growing to 1.2 crore in Q4FY23, up 82% YoY, and the total value of loans amounting to Rs 12,554 crore, registering a growth of 253% YoY. The company aims to onboard 10 crore merchants with over 50 crore payment users in the near future and plans to enlist 3-4 more lending partners in FY24.

Conclusion:

Paytm, India's leading payments and financial services company, reported impressive revenue growth in the fourth quarter of FY23, with a surge of 51% YoY to reach Rs 2,334 crore. The company's revenue increased by 61% YoY to Rs 7,990 crore for the full year, making it the highest-earning new-age firm in India. Paytm's loan distribution business and financial services revenue grew significantly, with the value of loans disbursed through its platform increasing by 364%. The company's user engagement on the platform continues to grow, with an increase in average Monthly Transacting Users (MTU) by 27% YoY to 90 million. With a vision to onboard 10 crore merchants with over 50 crore payment users in the near future, Paytm aims to enlist 3-4 lending partners in FY 2024.

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