One97 Communications,‘s parent company, said the value of its loans disbursed in October and November surged 374% year-on-year, with its annualised loan distribution run rate at ₹39,000 crore, or $4.8 billion.
In a regulatory filing for October and November, the financial services company reported a value of Rs 6,292 crore, or $774 million, and said the number of loans disbursed was at 6.8 million cumulative, a growth of 150% from a year ago.
One97 shares were down 1.10% at Rs 539.00 apiece in morning trade on BSE on Monday, while the wider Sensex index was marginally up at 62,189.19 points.
“We see a significant growth runway given low current penetration, while we continue to work with our partners to remain focused on the quality of the book,” the company said in its filings.
In its offline payments, the company claims to have more than 5.5 million merchants now paying subscription for payment devices.
“We continue to strengthen our leadership in offline payments,” the company said .
It also mentions that its subscription as a service model sees a strong adoption of devices driving higher payment volumes and subscription revenues, while increasing the funnel for merchant loan distribution.
Focus on payment volumes
Last month, the Reserve Bank of India (RBI) withheld Paytm’s application to provide a payment aggregator service for online merchants. Paytm Payments Services Limited (PPSL), a 100% subsidiary of Paytm, would have to resubmit an application for authorisation to provide payment aggregator service within 120 calendar days.
On the Paytm Super App front, the company continues to see growing consumer engagement with the average monthly transaction users for the two months at 84 million, registering a growth of 33% from the previous year.
It also posted that the total merchant GMV processed through for the two months aggregated to Rs 2.28 lakh crore, marking a growth of 37% from a year ago.
“Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential,” the company said.
Paytm’s board will be meeting on December 13 to discuss the plan for buyback, according to a filing last week. The fintech giant’s shares also saw a near 68% fall since they started trading on the stock exchange in November last year.
With the end of mandatory lock-in period, Paytm’s shares slid to a record low as the growing concern on profitability rises. SoftBank—one of the company’s early backers—offloaded shares worth over $200 million.
Edited by Teja Lele