Aided by festive season activity, Paytm’s Gross Merchandise Value (GMV) saw a 123 per cent jump in October-December 2021 to ₹2.50 lakh crore from ₹1.12 lakh crore in same quarter in previous fiscal. Led by significant non-UPI GMV growth, the year-to-date GMV is already higher than all of 2020-21, the company said in latest update of its Q3 operating performance (updated for December 2021) filed with stock exchanges on Monday.

Macquarie cuts target

It, however, came on a day when the Paytm stock hit a fresh all-time low of ₹1,152 , falling nearly 6 per cent. The shares fell after brokerage Macquarie cut its target price to ₹900 per share from ₹1,200 per share earlier, citing limited potential to scale distribution business for merchant loans. One97 Communications had got listed in the stock exchanges in November last year through the country’s largest ever IPO mop up of ₹18,300 crore.

Paytm: IPO investors loss mounts as stock hits fresh low

GMV refers to the value of total payments made to merchants through transactions on its app, through Paytm payment instruments or through its payment solutions, over a period. However, it excludes any consumer-to-consumer payment services such as money transfers.

1101Patytmcolcol

The latest update highlighted that the company — One 97 Communications (which owns and operates the brand Paytm) — recorded “stellar growth combined with scale-up of lending business and devices” in the third quarter. Macquarie Research has highlighted that RBI’s proposed digital payments regulations could cap wallet charges. Payments business still forms 70 per cent of overall gross revenues for Paytm, hence any regulations capping charges could impact revenues significantl. Also, Paytm’s foray into insurance was recently rejected by insurance regulator IRDAI and Macquarie Research believes this could impact Paytm’s prospects of getting a banking licence.

Paytm said on Monday that the number of loans disbursed through its platform increased by 401 per cent y-o-y to 4.41 million loans in October-December 2021.

Paytm reports 131% rise in GMV to $ 11.2 billion in October

The value of loans disbursed through the Paytm platform increased by 365 per cent y-o-y to ₹2,180 crore in the third quarter, the company said.

For quarter-ended September 30, 2021, Paytm had disbursed 2.84 million loans, up 714 per cent from 0.35 million loans in the same quarter last fiscal. The value of loans disbursed in September 2021 quarter was ₹1,260 crore, up 499 per cent over ₹210 crore disbursed in same quarter last fiscal.

The total number of devices deployed across its merchant base rose from 0.9 million as of June 30 to 1.3 million as of September 30, 2021, and to about 2 million as of December 31, 2021.

comment COMMENT NOW