Indian digital payments firm Paytm (PAYT.NS) witnessed a 39% rise in quarterly revenue, amounting to 23.42 billion Indian rupees ($285.68 million) in the three-months ending June 30, 2023. The surge in revenue was primarily attributed to the growing demand for loans and financial services.
- Quarterly revenue: 23.42 billion Indian rupees ($285.68 million)
- YoY revenue growth: 39%
- Operating profit: 840 million rupees
- Net loss: 3.57 billion rupees
- Contribution margin: 56%
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Operating Profit and Expenses
- Operating profit for the quarter: 840 million rupees
- Operating loss in the previous year: 2.75 billion rupees
- Net loss narrowed to: 3.57 billion rupees
- Quarterly expenses increased by: 15.9%
- Employee costs rose by: 21%
Paytm’s Fast-Growing Financial Services Business
Paytm’s financial services business, including “buy now pay later” loans, witnessed a remarkable growth of 93% and contributed 22.3% to the total revenue. The company’s contribution margin, a measure of revenue less cashbacks and charges, increased to 56% from 43% in the previous year.
Paytm’s impressive 39% rise in quarterly revenue, driven by the growing demand for loans and financial services, indicates the company’s strong position in India’s digital payments market. Despite the rise in expenses and the absence of government incentives, Paytm managed to report a positive operating profit for the third consecutive quarter.