Thursday, December 8, 2022

Paytm’s lending business hits annualised run rate of Rs 34,000 cr

Despite incurring quarterly losses, fintech major Paytm continued to see steady growth in its lending business in the September quarter this fiscal. The platform disbursed 9.2 million loans worth Rs 7,313 crore in Q2, recording a 224 per cent year-on-year growth, Paytm said in its earnings statement.
“[Our] loan distribution business has scaled up significantly over the last 12 months, seeing increased adoption by users. We exited Q2 FY23 with disbursements in our loan distribution business at an annualised run-rate (ARR) of about Rs 34,000 crore,” Paytm shared.
The value of personal loans jumped 736 per cent to Rs 2,055 crore since last September (Q2 FY22). More than 40 per cent of the disbursements were made to existing Paytm Postpaid [the Buy-Now-Pay-Later product] users. The average ticket size (ATS) of personal loans stood at Rs 110,000, while ATS for merchant loans was at Rs 150,000 in Q2 FY23.
Total merchant loans disbursed amounted to Rs 1,208 crore, a YoY growth of 342 per cent. “Repeat loans continue to see a healthy take up with 50 per cent of merchants having taken a loan more than once. More than 85 per cent of value disbursed this quarter was to merchants with a deployed Paytm payment device,” the company said in exchange filings.
Meanwhile, Paytm Postpaid, which powers purchases at checkouts with instant credit, disbursed loans worth Rs 4,050 crore, growing at 449 per cent. This was driven by increasing user adoption and rising offline-online merchant acceptance, with the network reaching 15 million at the end of Q2 FY23. Paytm Postpaid’s signed-up user base has now crossed 6 million.

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