New Delhi, January 9: Leading payments and financial services company Paytm on Monday announced its business operating performance for the third quarter in FY23, saying its robust growth continues with Gross Merchandise Value (GMV) for Q3FY23 at Rs 3.46 lakh crore.

The company said it continues to reign the market in offline payments with 5.8 million merchants now paying subscriptions for payment devices, while user engagement also continues to grow. Paytm Payments Bank Supports UPI Market Cap, Maintains Leadership As Payment Service Provider and Issuer Bank.

In its stock exchange filing, Paytm said that the aSuper App' continues to see growing consumer engagement for its wide array of payment and financial services. The company's average monthly transacting users (MTU) for the quarter ended December 2022 stood at 85 million, registering a robust growth of 32 per cent (year-on-year).

"Our payments and lending business continues to scale with strong adoption by consumers and merchants. We continue to remain focussed on execution and are confident on our profitability plans,a the company said. Paytm reached a new milestone in offline payments with 3.8 million devices added year-on-year.

Highlighting its plans for its core payments business, the company said that with a focus on creating additional payment monetization beyond MDR, its focus on subscription services continues to expand. "With our subscription as a service model, the strong adoption of devices drives higher payment volumes and subscription revenues, while increasing the funnel for our merchant loan distribution," said Paytm. Surinder Chawla, Veteran Banker, Appointed As Paytm Payments Bank CEO and Managing Director.

The company's loan distribution business, in partnership with top lenders, continues to witness an accelerated growth with disbursements growing 330 per cent YoY. Loans worth Rs 3,665 crore were disbursed in the month of December. The number of loans grew 117 per cent YoY to 3.7 million for December, and 137 per cent to 10.5 million cumulative loans for the three months, ended December 2022.

As a result, total disbursements for three months ended December 2022 was Rs 9,958 crore, a growth of 357 per cent YoY. The total merchant GMV processed through the platform for Q3FY23 aggregated to Rs 3.46 lakh crore ($42 billion), marking a YoY growth of 38 per cent.

"Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential," the company said in its stock exchange filing. In Q2FY23, Paytm reported a sustained revenue growth at Rs 1,914 crore and a sharp improvement in EBITDA before ESOP cost by Rs 108 crore QoQ.

The company's EBITDA (before ESOP) loss stood at Rs 166 crore, a sharp improvement of 15 per cent QoQ and Rs 259 crore YoY despite continued investments in sales, technology and marketing. The EBITDA before ESOP cost improved by Rs 201 crore in the past two quarters, said the company.

(The above story first appeared on LatestLY on Jan 09, 2023 11:37 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).