American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

India’s Paytm sees losses narrow to ₹208 crore, shares tick up

by admin January 20, 2025
January 20, 2025
India’s Paytm sees losses narrow to ₹208 crore, shares tick up

Paytm posted its earnings for the December quarter on January 20.

The payment giant reported that its net loss for the December quarter narrowed to ₹208 crore (around $24.4 million), compared to ₹220 crore in the same period last year.

During the quarter, Paytm completed the sale of its stake in Japan’s PayPay Corporation for $280 million (₹2,372 crore), resulting in a reported gain of ₹388 crore.

This follows the company’s massive profit in the September quarter, driven by a one-time gain from the sale of its ticketing business to Zomato.

Without this exceptional gain, Paytm would have remained in the red.

Despite the narrowing loss, the company continued to experience challenges, though its digital payments business showed signs of recovery, particularly following the winding down of its payments bank unit.

Revenue for the quarter fell 36%, standing at ₹1,828 crore, down from ₹2,850 crore in the same quarter last year.

However, on a quarter-on-quarter (Q-o-Q) basis, revenue grew by 10% due to an increase in Gross Merchandise Value (GMV), growth in subscription revenues, and a rise in revenues from financial services distribution.

Shares of the fintech major were up over 1% to trade at ₹910.65 on Monday.

Paytm’s revenue breakdown

Of the total revenue of ₹1,828 crore, ₹1,059 crore came from the payments business, showing an 8% growth on a Q-o-Q basis, while ₹502 crore was generated from financial services, reflecting a 34% increase Q-o-Q.

Paytm also reported having 1.17 crore merchant subscriptions as of December 2024, an increase of 5 lakh Q-o-Q, with revenue per merchant rising.

The company noted that its strategy of refurbishing inactive devices and redeploying them at new merchants contributed to the rise in revenue per merchant and reduced capital expenditure.

Paytm’s Monthly Transacting Users (MTUs) on the consumer payments side increased to 7.2 crore in December 2024, up from 6.8 crore in September 2024, following the Reserve Bank of India’s approval to onboard new UPI customers in October.

Paytm’s financial services revenue was bolstered by an increase in the share of merchant loans, higher trail revenue from the Default Loss Guarantee (DLG) portfolio, and better collection efficiencies.

During the quarter, 5.9 lakh customers utilized Paytm’s platform for services like loans, equity broking, and insurance.

The company disbursed ₹3,831 crore in merchant loans, showing slight improvement from the previous quarter, with a significant portion under the DLG model.

Paytm continued to recalibrate its personal loans business, focusing on a distribution-only model and tightening risk policies in collaboration with lenders.

The company disbursed ₹1,746 crore in personal loans during the quarter. It also saw increased interest from lenders to partner under the DLG model for both merchant and personal loans, which is expected to boost disbursements and expand partnerships with new lenders.

The outstanding AUM for DLG portfolios as of December 31, 2024, stood at ₹4,244 crore, compared to ₹1,651 crore on September 30, 2024.

The post India’s Paytm sees losses narrow to ₹208 crore, shares tick up appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Will TSMC’s CHIPS Act funding survive Trump’s ‘chip theft’ accusations?
next post
GE Aerospace stock price forms a risky pattern ahead of earnings

Related Posts

3 reasons why the S&P 500 ETFs like...

March 4, 2025

Tesla is the new meme stock, according to...

July 12, 2024

HSBC launches $2 billion share buyback as annual...

February 19, 2025

SCHD ETF technical analysis: buy, sell or hold...

February 6, 2025

Abercrombie & Fitch stock sits at a key...

November 3, 2024

GM slows its EV plans again even as...

July 25, 2024

CATL share price surges 18% in Hong Kong...

May 20, 2025

Intuitive Surgical stock dubbed a ‘premier, high-growth’ name...

June 10, 2025

CAC 40 index hits key price as LVMH,...

September 27, 2024

Who is Tracy Morgan? The comedian with a...

March 18, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved