BENGALURU, July 25 (MeelBijendra) – Paytm, the second largest digital payments app in India by market share, says the value of loans disbursed through the Paytm platform grew by 167% year-on-year to INR 14,845 crore in Q1 FY24, with continued momentum in consumer and merchant loan disbursements along with improving portfolio quality.
Paytm generally disburses 3 types of loans:
- Postpaid Loans
- Merchant Loans
- Personal Loans
Paytm has disbursed loans worth INR 8,039 crore in postpaid loans, INR 4,062 crore in personal loans, and INR 2,744 crore in merchant loans by the end of June 2023 (Q1 FY24). While Paytm had disbursed loans worth INR 3,383 crore in postpaid loans, INR 1,344 crore in personal loans, and INR 827 crore in merchant loans by the end of June 2022.
|Loan disbursement type||June 23 (Q1 FY24)||June 22 (Q1 FY23)||Change in % YoY|
|Personal Loans||₹4,062 Cr||₹1,344 Cr||202%|
|Merchant Loans||₹2,744 Cr||₹827 Cr||232%|
|Postpaid Loans||₹8,039 Cr||₹3,383 Cr||138%|
Paytm is driving growth in its co-branded credit cards and advertising “Commerce” and “Cloud” – The company sells travel, movies and event ticketing and deals, gift vouchers to customers in the Commerce segment while providing advertising, marketing loyalty services to various enterprises and distributing co-branded credit cards in the Cloud segment.
In Q1 FY24, the company’s growth slowed down due to decline in the movie and play store voucher segments but the gross merchandise value (GMV) of commerce services stood at INR 2,537 crore, registering a double-digit YoY growth.
The total number of Paytm co-branded credit cards is 7.5 lakh active cards by June 2023, which has seen an increase in the company’s co-branded credit card distribution and advertising on a year-on-year basis.
Paytm said the recovery rate is over 90% across postpaid loans, merchant loans and personal loans – besides increasing capacity with increased workforce and over 50 tie-ups with on-ground collection partners.