Fintech major Paytm on Monday reported a consolidated net loss of ₹209 crore for the quarter ended December 31,2024. This was narrower than the net loss of ₹222 crore recorded in the same quarter a year ago. In September 2024 quarter, Paytm had recorded a net profit of ₹930 crore.
For the nine months ended December 31,2024, One97 Communications Ltd, which owns brand Paytm, reported a net loss of ₹119 crore, much narrower than net loss of ₹872 crore recorded in same period in previous year.
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Meanwhile, Paytm’s consolidated Revenue from Operations for the quarter under review grew sequentially to ₹1,823 crore (₹1,660 crore in September 2024 quarter). However it was much lower than revenue from operations of ₹2,850 crore in December 2023 quarter.
Paytm’s revenue from payment services grew by 8 percent q-o-q to ₹1,059 crore, supported by an increase in GMV, which reached ₹5.0 Lakh crore (up 13 percent q-o-q). The merchant subscriber base for devices grew to 1.17 crore, with a net addition of 5 Lakh new subscribers during the quarter.
During the quarter, Paytm received approval from NPCI to onboard new UPI users, driving an increase in Monthly Transacting Users (MTUs) to 7.2 crore by December 2024 as compared to 6.8 crore in September 2024. The company plans to drive growth in the consumer base by continuing to develop innovative products, and disciplined investments in brand and performance marketing.
Paytm’s cash balance stood at ₹12,850 crore as of December 2024, an increase of ₹2,851 crore q-o-q, largely on account of conclusion of PayPay stake sale and improvement in working capital.
Paytm stated that it remains committed to driving innovation by focusing on comprehensive merchant lifecycle solutions, accelerating device deployment in tier-2 and tier-3 cities, and expanding its financial services offerings.
With a robust cash balance, the company emphasised that it is well-equipped to seize market opportunities while adhering to a compliance-first approach across all its operations.
International Expansion
Meanwhile, the board of Paytm Cloud Technologies Limited (PCTL), a wholly owned subsidiary of One 97 Communications Board, on Monday gave its nod for incorporation of wholly owned subsidiaries in the United Arab Emirates, Kingdom of Saudi Arabia and Singapore. The newly incorporated companies will be step down subsidiaries of the Company.
“We believe that our technology led merchant payments and financial services distribution business model in India, has the potential for expansion in similar international markets. We have developed a portfolio of innovative hardware, software and services stack in India, which can be deployed and monetised internationally.
“We are exploring various approaches including organic expansion / local licenses, strategic investment and partnerships”, Paytm said in its filing with stock exchanges.
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GIFT City Update
Paytm said that its proposed incorporation of one or more wholly owned subsidiaries against in the GIFT City is likely to be completed in next 24 months.
Stake Sale in Step Down Subsidiary
Meanwhile, the board of Paytm subsidiary, Mobiquest Mobile Technologies Private Limited on Monday approved sale of 100 percent stake in its wholly owned subsidiary, Xceed IT Solutions Private Limited (Xceed). Post consummation of the transaction, Xceed will cease to be a step-down subsidiary of the Company.
Meanwhile, post the Q3 results announcement Paytm shares were up 1.71 per cent in morning trade at ₹911.25 per share.