Paytm Reports 8.4% Increase in Loss in T2FY22 Financial Report
One97 Communications, the parent company of digital payments company Paytm, on Saturday released its second quarter earnings report ending September 30, in which it reported a net loss increased 8.4% to 474 crore corresponding to ₹ 437 crore in the same quarter last year.
Operating income jumped 64% year-on-year (YoY) to Rs 1,090 crore in the reference quarter. The increase is due to a 52% growth in non-UPI payment volumes (GMV) and more than 3 times the growth in financial services, the company said in a regulatory filing.
“The growth of the non-UPI GMV has resulted in continued growth in payment revenues, and our UPI-driven growth in payment volume is translating into a significant acceleration of our financial services offering. We are driving the penetration and widespread adoption of digital payments and financial services across India. Paytm had a strong second quarter of fiscal 22, which is a testament to the strong two-way ecosystem of consumers and merchants that we have built. We have maintained the growth momentum of our payment services business, aggressively developed our financial services business and are on track to achieve pre-COVID volumes for Commerce and Cloud services, ”the company said in a statement. communicated.
Financial services also experienced strong growth, the statement added.
With a cash equivalent and an investable balance of $ 110 billion, the company said it was “fully capitalized,” including through an initial public offering (IPO).
“Paytm had a strong second quarter of fiscal 22, which speaks to the strong two-way ecosystem of consumers and merchants that we have built,” the statement added.
At the segment level, revenue from payment services and financial services attracted Rs 842.6 crore in the quarter, up from Rs 497.8 crore a year ago, up 69%. Cloud and commerce services revenue stood at Rs 243.8 crore, up 47% from revenue of Rs 166 crore year-on-year.
Total direct spending jumped 32% to Rs 825.7 crore from Rs 626 crore year-on-year.
Paytm, backed by Jack Ma’s Ant Group and Japan’s SoftBank Group Corp, raised $ 2.5 billion from its IPO this month, but made a failed debut on Indian exchanges last week.