Paytm Expands Credit Distribution Business

One97 Communications Limited One97 Communications Limited which owns India's leading mobile payments and financial services delivery company brand Paytm and shared an update and outlook on its loan disbursement business. The company announced that it will further expand its business to offer high ticket personal and merchant loans in partnership with large banks and NBFCs, targeted at low-risk and high creditworthy customers.

The company started in this direction last quarter, given the strong portfolio performance and widespread acceptance of loan disbursement, and the initial trends look encouraging.

In line with its continued focus on driving a healthy portfolio in consultation with lending partners based on macro growth and regulatory guidance, the company has recalibrated portfolio origins of less than 50,000, which is primarily a postpaid loan product, and will now be a small part of its loan disbursement business going forward.

Merchant loans that are offered as business loans to MSMEs will continue to be the focus for Paytm. And these loans are given to small businesses for business purposes, so they are not affected by regulatory guidance.

"As the loan disbursing business matures, we are seeing new opportunities for expansion to offer high-value personal and business loans. We will continue to focus on high portfolio quality as well as rigorous adherence for our lending partners. Risk and compliance. We have seen massive scale and acceptance for our loan disbursement business, that this expansion will further help us grow the business." Paytm continues to add banks and NBFCs as its loan partners for its loan disbursement business.

According to the company, it has seven NBFC partners for loan disbursement, and they are in the process of integrating one large bank and two large NBFCs, which will be completed during the fourth quarter of FY24 and the first quarter of FY25.

Apart from this, the company has three credit card partners, and it is in the process of partnering with another bank, whose main focus is on RuPay Credit Card.

Revenue from financial services and others grew 64 per cent year-on-year to Rs 571 crore. In the July-September quarter of FY 2024, the number of unique users taking loans through the Paytm platform reached 1.18 crore. Loan disbursement continues with Rs. 16,211 crore (up 122% year-on-year).

About Paytm:

Paytm is India's leading mobile payment and financial services delivery company. Mobile QR Payment Revolution in India Paytm, the forerunner of the mobile QR payment revolution in India, creates technologies that help small businesses with payments and commerce. Paytm's mission is to serve half a billion Indians and bring them into the mainstream economy with the help of technology.