Paytm sees record growth in Oct — GMV jumps 131 pc to Rs 829 bn

• User transactions on the platform hit an all-time high during the festive season as October 2021 MTU stood at 63 MM, an increase of 35% y-o-y.
• Increased engagement and transaction value per user as the company saw a 70% y-o-y rise in GMV / MTU to INR 13,149 ($176) in October 2021
• Offline payments dominance continues with the addition of nearly 1 million devices post September 2020
• Financial Services Business sees consistent growth; 1.3 million Loans Disbursed in October alone
• Loan Disbursals through the platform reached $1 billion annualized run-rate; INR 6,270 million ($84 million) for October 2021, an increase of 418% Y-o-Y

NE BUSINESS BUREAU

AHMEDABAD, NOV 24

One97 Communications, the parent company of  India’s leading digital ecosystem for consumers and merchants Paytm, reported that its gross merchandise value (GMV) processed through the platform for the month of October 2021 aggregated to approximately Rs 828 Bn ($ 11.1 Bn), a growth of 131% over the same period last year, says a release.

The month of October alone saw a rapid surge in the numbers of consumers and merchants transacting on the Paytm ecosystem, reflecting an increase in the frequency of transactions or engagement and growing adoption of Paytm’s innovative products & services.

Paytm recorded an accelerated growth in GMV in October 2021, driven by increased consumption and festive season spends, continued opening up of physical stores and establishments with the easing of COVID-19 restrictions. This was in addition to consistent growth in the merchant base, increased deployment of offline payment devices across the country, and also introduction of varied new categories on the platform.

Paytm witnessed a continued increase in consumer traffic and transactions on the ecosystem as Monthly Transacting Users hit a six-quarter high. 63 MM consumers transacted on the ecosystem in October 2021. This is a growth of 35% over the 47 MM MTUs in October 2020.

This also translated into increased Average GMV per transacting user in a month; that is heightened consumer and merchant engagement on our ecosystem. The company’s monthly GMV / MTU increased to INR 13,149 ($176) in October 2021, a growth of 70% over INR 7,736 ($104) during the same month last year.

Paytm continued to witness the strong adoption of its POS and Soundbox devices among its merchant partners. The total number of such devices deployed across the merchant base, increased from 0.9 MM as on June 30, 2021 to 1.4 MM as on October 31, 2021, a 55% jump in four months.

The company is excited about the future growth prospects of its financial services businesses. The October month saw a continued increase in adoption across its different financial services products.

The lending business continued to show very strong growth as a result of rapid scale-up of all of its lending products and the addition of a new partner, HDFC Bank. . Due to cautious approach in making new disbursements due to the second wave of the COVID-19 pandemic in May 2021 and June 2021, the company processed a total of 1.4 million loans through our financial institution partners in Q1 FY 2022. Paytm saw continued recovery in the segment as our financial institution partners’ disbursal almost doubled with over 2.8 million loans in Q2 FY 2022. The October 2021 month saw continued increase in adoption across different financial services products.

The lending business continued to show very strong growth as a result of rapid scale up of all of Paytm’s lending products, including Postpaid, consumer loans and merchant loans. Paytm’s financial institution partners disbursed a total of 1.3 million loans in October 2021 aggregating to a total disbursal of INR 6,270 million ($84 million), implying a 472% increase in numbers of loans disbursed Y-o-Y and 418% increase in value of loans disbursed Y-o-Y.

The table below, summarizes the key operating metrics as highlighted above.