As Quarterly Revenue Soars, Paytm Reaches Nearly 6-Month High

The parent company of Indian digital payments giant Paytm, One 97 Communications Ltd, reported an 89% increase in its quarterly revenue on Monday, sending the company's shares up more than 6% to their highest levels in almost six months.
The company's revenue increased from Rs 891 crore last year to Rs 1,680 crore ($211.16 million) as a result of more monthly customers, more payment options, and increased loan disbursements. After the market closed on Friday, the edtech platform upGrad dollars trend reported a $1,670 crore fundraising. In the Indian digital payments sector, Paytm, which competes with Walmart Inc.'s PhonePe and Google's payment app, said it is on target to achieve operational profitability by September 2023.

The dramatically enhanced gross margin print in the payments sector, which led to an expansion in contribution margins to 13 bps, was the noteworthy print in the results, according to a note from J.P. Morgan analysts on Monday. Reliance invests Rs 30 billion in the retail sector in FY22;

The company's processing costs, which are supported by China's Ant Group and Japan's SoftBank Group Corp, decreased 10.4% to Rs 694 crore sequentially. According to a note from Macquarie analysts, "the management highlighted that it could negotiate better arrangements with their bank partners, and rationalized certain low margin online merchant accounts that resulted in cheaper payment processing fees."