Paytm, India’s leading mobile payments company, reported a revenue increase of 13.2% to $285.7 million in the quarter ended March, offsetting its loss by 57% to $20.5 million in a sharp turnaround for the company as it scrambles to become more profitable. to become.
Paytm’s total revenue for the fiscal year ending March 2023 was $977.9 million, up from $644.4 million. During the period, the company reduced its losses to $217 million from $293.3 million.
The company attributed the sharp increase in sales to the growth of payment monetization and the broadening of loan distribution. “Our contribution margin improved from 30% in FY 2022 to 49% in FY 2023, driven by improved payment profitability and growth in high-margin loan distribution,” the company said in a statement.
Paytm said it disbursed loans worth $1.5 billion in Q4 FY 2023 and served 9.3 million borrowers through its namesake platform.
“We achieved operating profitability (EBITDA before ESOP) in the second half of this year and we believe we can continue our growth momentum and further improve our profitability. We have made significant investments in sales personnel, technology platform enhancements, marketing spend, etc., which will help us maintain this momentum.”
Paytm, once the poster child of the Indian startup ecosystem, suffered a poor public debut in 2021. The Noida-headquartered company, in response, pledged to accelerate its efforts to become profitable.
The company, led by Vijay Shekhar Sharma, is still down 67% from its IPO price of 2,150 Indian rupees ($26.3). In addition to improving its sales and contribution margin, the company is also aggressively deepening its product offerings, including primarily its loan offerings, to attract customers.
Paytm’s major mobile payment service competes with PhonePe, backed by General Atlantic and Walmart, and Google’s Google Pay. PhonePe, with sales of less than $350 million, is valued at $12 billion. Paytm ended Friday at a market cap of $5.35 billion.
“As we enter fiscal year 2024, we are excited about the long-term potential for revenue growth and profitability in payments and credit businesses. The growth of UPI and other mobile payment methods presents a wealth of untapped opportunities,” Paytm said in a press statement following the earnings announcement.