Paytm net loss in Q4 decreased by 78% to INR 167.5 crore, Know Full Details

Paytm: a major player in the financial technology industry, saw a significant reduction in net loss of 78% compared to the previous year, resulting in a net loss of INR 167.5 crore in the quarter ending in March 2023. This was due to a strong growth in all areas of their business. Additionally, there was a 57% decrease in net loss from the preceding quarter, where the net loss was INR 392.1 crore.

The startup led by Vijay Shekhar Sharma experienced a 51% increase in operating revenue to INR 2,334.5 crore in Q4 FY23, compared to INR 1,540.9 crore in the March quarter of FY22. On a quarterly basis, there was a 13% increase in operating revenue from INR 2,062 crore.

Paytm: Increase in Revenue

The revenue generated from payment services in the current quarter increased by 28% compared to the previous year and amounted to INR 1,334 Cr. This figure includes an incentive of INR 49 Cr for UPI. Additionally, during the fourth quarter of the fiscal year 2023, financial services and other related businesses contributed INR 475 Cr to the total revenue, which is higher than the INR 446 Cr earned in the same quarter of the previous year.

Paytm has attributed the growth in financial services revenue to the substantial increase in the value of loans distributed during the quarter, which rose by 253% compared to the previous year to INR 12,554 Cr. Furthermore, the number of loans disbursed through the platform surged by 82% YoY to 1.2 Cr in Q4.

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Paytm has stated that as of March 2023, 95 lakh borrowers have taken a loan through their platform. They anticipate continued growth in this business as there is still a significant potential for penetration in each of their loan distribution products.

In Q4, the commerce and cloud services vertical contributed INR 392 Cr to Paytm’s revenue. Paytm’s expenses increased by 10% to INR 2,630.5 Cr in Q4 FY23 compared to INR 2,372 Cr in the same quarter last year. Sequentially, expenses grew by nearly 5% from INR 2,512.3 Cr.

Paytm CEO
Paytm CEO


During the quarter under review, Paytm’s EBITDA before ESOP costs, which includes UPI incentive received from the government, was INR 101 Cr. In the previous December quarter, Paytm had reported its first EBITDA positive quarter, excluding ESOP costs.

ESOP expenses remained almost unchanged at INR 363 Cr in Q4, which is similar to INR 362 Cr in the year-ago quarter.

The fintech company stated that they were able to attain operational profitability (EBITDA before ESOP) in the latter part of this year and are optimistic about maintaining their growth momentum and enhancing their profitability further.

In the financial year 2022-23 (FY23), Paytm observed a 25% decline in net loss, from INR 2,396.4 Cr in FY22 to INR 1,776.5 Cr. Operating revenue also increased substantially, rising by 61% to INR 7,990.3 Cr in FY23.

(Input from Inc42)

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