Payments firm Paytm stated a 39.4% growth in revenue at Rs 2,341 crore for Q1 after it narrowed its losses by 45% to Rs 358 crore in Q1 from Rs 645 crore in the same period last year.

Paytm’s overall metrics improved with the net payment margin due to increased merchant subscription revenues. Its payment processing margin rose amid non-UPI transactions such as card and EMI growing relatively faster for the company.

The company’s revenue from payments business rose 31% during the quarter to Rs 1,414 crore. The net payment margin was up 69% YoY to Rs 648 crore.

It increased 93% YoY in revenue from financial services from its thriving and rapidly growing lending market to Rs 522 crore.

The company’s cash balance surged to Rs 8,367 crore during June 2023, as compared to Rs 8,275 crore during March 2023.

Paytm’s credit distribution business stated a 167% YoY growth for June, disbursing Rs 14,845 crore in loan value. The overall loans facilitated on payments grew to 1.28 crore, a 51% increase. The company receives a commission from distributing credit on its platform.

Merchant payment volumes or GMV (gross merchandise value) stood at Rs 4.05 lakh crore, a YoY growth of 37%.

Paytm has four types of credit portfolios – Paytm Postpaid, personal loan, merchant loan and co-branded credit cards.

It saw the monthly transacting user base grow to 9.2 crore from 7.5 crore (a 23% YoY jump) during last year’s June quarter. The number of payment devices increased to 79 lakh, doubling from the 38 lakh devices deployed during the previous fiscal year.

It includes point-of-sale devices and soundboxes that proclaim scan-and-pay transactions. The business earns monthly rent from both. It added 11 lakh devices during Q1FY24.

Its UPI market share stands at 13%. Its rival PhonePe has also started a merchant lending business this quarter.

Now, Paytm has seven financial partnerships for loan distribution and plans for three to four more players. The company also declared a loan distribution partnership with Shriram Finance.

Paytm’s parent, One97 Communications’ shares, closed at Rs 843.55 a piece on the BSE, down 0.89% from the previous close.