Paytm has reported a net loss of Rs 645 crore in the first quarter of FY23. Net losses widened on a year-on-year (y-O-y) basis in Q1. The net loss in the same quarter last year was 382 crore, recording a loss of over 69%. However, it is 15% lower than its March 2022 loss of Rs 763 crores.

The company, however, recorded a lower EBITDA (Earnings before interest, taxes, depreciation, and amortisation) loss of Rs 275 crore. This was an improvement of Rs 93 crore Quarter-on-Quarter.

Revenue from operations rose to Rs 1,680 crores, up 89% for the quarter under review. The contribution profit for this quarter increased 197% to Rs 726 crore. The management asserted that it is committed to building a profitable company and creating shareholder value while driving digitisation and inclusive financial access.

The company further said that Q1 FY 2023 results reaffirm that focus will remain on improvement in unit economics, better expense management and increasing mix of higher margins.

Paytm’s payments services revenue rose by 69% Y-o-Y. Faster growth in user engagement, merchant base, subscription revenue from payment devices, and use cases on the Paytm super app caused a 101% Y-o-Y jump in Gross Merchandise Value (GMV). The figure stood at Rs 2.96 lakh crore during the quarter.
As far as the offline payments segment is concerned, Paytm continues to dominate. A total of 3.8 million devices have been deployed, of which 2.8 million were added in the last year.

The company’s revenue from financial services grew 393% Y-o-Y during the quarter. This was largely led by massive growth in Paytm’s loan distribution business. During the quarter, Paytm disbursed about 8.5 million loans, showing a growth of 492% Y-o-Y.

Moreover, the company has reached an annualised run rate of approximately Rs 24,000 crore of loans through its platform, with higher demand for Paytm Postpaid (BNPL), merchant loans and personal loans.