Paytm‘s revenue for the second quarter of the fiscal year rose 64% to hit 10.9 billion rupees (US$145.2 million), propelled by increased usage of non-UPI services on its platform.
These results come after the Paytm went public earlier this month in India’s largest IPO to date. However, its rocky market debut has driven investors to put other Indian fintech firms looking to list under greater scrutiny.
Paytm’s net loss widened by 8.4%, reaching 4.74 billion rupees (US$64.5 million) as its expenses went up. However, Paytm also highlighted a 592% jump in its quarterly contribution profit to stand at 2.61 billion rupees, thanks to its lending, advertisements, and commerce offerings, among others.
Vijay Shekhar Sharma, founder and CEO of Paytm / Photo credit: Tech in Asia
“We have maintained the growth momentum in our payments services business, expanded our financial services business aggressively, and are on our way to pre-Covid volumes for Commerce and Cloud services,” Patym said in a statement.
The company’s payments and financial services business brought in 8.43 billion rupees (US$112.3 million) in revenue, up 54% from a year ago, largely due to higher revenue from its lending and wealth (Paytm Money) units. The business also accounted for 75.3% of Paytm’s total revenue in FYE 2021.
Meanwhile, Paytm’s commerce and cloud services unit generated 2.44 billion rupees (US$32.5 million), climbing 47% from last year. The company said it has been seeing a post-Covid recovery in its travel and entertainment ticketing businesses.
See also: Paytm IPO: 8 key points about India’s largest stock market debut
In a post-IPO filing with the Bombay Stock Exchange, Paytm said that its gross merchandise value climbed 131% year on year to 832 billion rupees (US$11.2 billion) in October, ahead of the Diwali holiday season in India.
Paytm also reported that it disbursed over 2.8 million in loans in the second quarter, a surge of 714% compared to the previous year.
Currency converted from Indian rupees to US dollar: US$1 = 74.93 rupees.
Editing by Collin Furtado, Arpit Nayak, and Eileen C. Ang
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