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With digital payments becoming the new normal, Paytm's pioneering solutions in the country are driving robust growth momentum. Paytm's innovative and iconic products, which are widely accepted and trusted by crores of merchants in the country, are one of the reasons behind its strong growth trajectory.
This is reflected in the surging revenue growth of the fintech giant while crossing a crucial milestone every quarter. Paytm achieved operational profitability for the first time in the third quarter of financial year 2022–23, and the company further strengthened it in Q4FY23.
In the January–March quarter, Paytm's revenue grew 51% year-on-year to Rs 2,334 crore, driven by high merchant subscription revenues and the growing scale of its loan distribution business. In the last fiscal, the company's revenue from operations jumped 61% YoY to Rs 7,990 crore.
Source: Paytm
Paytm's army of 79 lakh merchants that pay subscriptions for its payment devices like Paytm Soundbox and Paytm card machines have aided the company in achieving aggressive growth.
Source: Paytm
The average monthly transacting users stood at 9.2 crore, growing 23% YoY in the first quarter of the current fiscal, as the adoption of mobile payments for consumers and merchants in India continues.
With the rise in monthly transactions, the gross merchandise value also increased handsomely by 37% YoY to Rs 4.05 lakh crore in the first quarter. The impressive growth reflects the increasing acceptance of its QR and Paytm Soundbox.
Source: Paytm
Adding to it, incentives from the government for UPI and subscription revenue from merchants are also driving its payments business. Paytm received a UPI incentive of Rs 49 crore in the March quarter from the government. Total UPI incentive for 2022-23 stood at Rs 182 crore, which grew 102% YoY.
The fact that Paytm has made significant investments towards sales manpower, improvement of technology platform, marketing spends, etc. ensures the strong growth momentum would continue.
Paytm founder and CEO Vijay Shekhar Sharma believes payments and financial services distribution business are the growth drivers of the company. Paytm's next milestone is to become free cash flow positive in the near future.
“I am very proud of our team which has delivered such amazing results through their clinical focus on execution and quality business metrics. Our focus on quality revenues has led to more rupee to the bottom-line and our incremental business continues to generate better margins,” said Sharma in a letter to shareholders.
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