Fintech giant Paytm reported its Q1FY24 results later on Friday in which it mentioned that its net loss narrowed to Rs 357 crore for the quarter ending June 30, 2023. It reported Rs 644 crore net loss a year ago period. Led by the payments and loan distribution business growth revenue jumped 39% YoY to Rs 2,342 crores in comparison to Rs 1,680 crore reported in Q1FY23. However net loss has widened when compared to Rs 168 crore reported in the preceding March quarter of fiscal 2022-23.
“Led by payments and loan distribution business growth, our revenue jumped 39% YoY to Rs 2,342 crore, and EBITDA before ESOP grew to Rs 84 crore. We continue to see consistent growth in profitability, with contribution margin expanding to 56% of revenues,” said Paytm in its earnings announcement.
Paytm’s contribution margin increased to 56% and credit distribution business reported a 167 percent year-on-year growth for the June quarter disbursing Rs 14,845 crore in loan value. Its merchant subscriptions are doubled with up to 79 lakh merchant subscriptions till June 2023. Growth drivers in the business reported by Paytm are Increasing adoption of technology by merchants, such as Soundbox, and Card Machines, Innovations in the payment ecosystem, ample opportunity for growth, and a Bonds trading platform for retail investors launched by Paytm Money.
