One97 Communications, the parent company of popular fintech platform Paytm, has experienced significant growth in Gross Merchandise Value (GMV) during the April-June quarter of the current year. The company’s GMV reached an impressive Rs 4.05 lakh crore ($49.3 billion), representing a substantial 37% increase from the same period last year.
Expansion of Paytm’s User Base
Amid this remarkable growth, Paytm has also witnessed a substantial surge in its average monthly transacting users, which increased by 23% year-on-year (YoY). The reported figure now stands at 9.2 crore users during the current quarter, compared to 7.5 crore users in the corresponding quarter of the previous year (June 2022).
Surge in Loan Disbursals
Another significant development is Paytm’s remarkable success in loan disbursals. The value of loans disbursed through the platform has grown more than 2.5 times compared to last year. In concrete numbers, the loan amount increased to Rs 14,845 crore, up from Rs 5,554 crore a year ago. Furthermore, the loan volume saw an even more impressive 51% growth, reaching 1.28 crore loans, up from 85 lakh during the same period last year.
Analysis of the Loan Distribution Trend
Paytm attributes the MoM loan distribution trend in June to the higher disbursals in May. The increase in May was driven by pent-up demand for merchant loans from April. This upswing can be linked to one of Paytm’s partners not disbursing loans in April, as they were upgrading their systems.
Steady Growth in Subscription Merchants Base
Additionally, Paytm has recorded significant growth in its total subscription merchants base. The company’s earnings from seeding payment devices have more than doubled, soaring from 38 lakh a year ago to 79 lakh during the current quarter (June 2023).
Paytm Founder’s Stance on Data Protection
Vijay Shekhar Sharma, the Founder and CEO of Paytm, emphasized the importance of adhering to India’s rules and regulations on data localization. He believes that companies operating in the country have an obligation to protect the data of Indian citizens and must comply with the established laws and regulations. Sharma expressed his support for safeguarding citizen data and emphasized that companies operating in India should not attempt to bypass the country’s legal requirements.
With such impressive growth in GMV and a rapidly expanding user base, Paytm continues to demonstrate its position as a prominent player in India’s fintech industry. The platform’s focus on data protection and adherence to local regulations indicates its commitment to ethical practices and responsible business operations.
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