Paytm’s consolidated loss mounts to Rs 2,396 crore in FY22, revenue up 65% to Rs 5,264 crore

Bengaluru: , which runs the digital payments brand , reported a consolidated loss of Rs 2,396.4 crore for fiscal year 2022, about 41% wider than the previous year’s Rs 1,701 crore.

Consolidated revenue for the year ended March 31 grew 65% to Rs 5,264.3 crore from Rs 3,186.8 crore in FY21, as per filings made with stock exchanges on Friday evening.

For the fiscal fourth quarter, its consolidated loss widened to Rs 762.5 crore from Rs 444.4 crore a year earlier. Revenue for January-March rose 81% to Rs 1,648.4 crore, driven by growth in gross merchandise value processed from its payment instruments, as well as an increase in loan disbursals.

In the third quarter of fiscal 2022, the company had posted a loss of Rs 778.5 crore on revenue of Rs 1,533.4 crore.

Total expenses for the financial services provider were Rs 7,601.1 crore in fiscal 2022, up 59% from the year before, with payment processing charges and employee benefits contributing a huge share to the company’s total cash burn.

One97 Communications’ revenues had shrunk almost 11% in FY21 on account of the pandemic. But its loss had narrowed 42% that fiscal year, right before its initial public offering.

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In a note to shareholders last month, founder Vijay Shekhar Sharma said that he expected the company to
break even on an operating basis — or before interest, taxes, depreciation and amortisation — in the next six quarters. This would be excluding the cost on the employee stock ownership plan.

Before the results announcement Friday, Paytm shares closed 3.9% higher at Rs 575.35 on the BSE. The shares are trading 73% below its IPO price of Rs 2,150. The shares started trading in November last year.

In January, brokerage firm Macquarie cut Paytm’s revenue growth estimates for FY21-FY26 to 23% on a compounded annual growth rate basis from 26% earlier. Macquarie said it was roughly cutting Paytm’s revenue estimates on an average by 10% every year due to expectation of lower distribution and commerce and cloud revenues, offset partially by higher payment revenues.

Just last week, Paytm informed the stock exchanges of its operating performance and said that
it disbursed 15.2 million loans in FY22. This was a more than five-fold growth from FY21 when the number of overall loans disbursed on the platform was 2.6 million, according to data released by One97 Communications.

The total value of loans disbursed in FY22 was Rs 7,623 crore, according to data released by the company

Paytm offers personal loans, merchant lending and postpaid, its buy-now-pay-later offering, through partnerships with financial institutions.

Paytm also said the total gross merchandise value (GMV) processed by the platform stood at Rs 8.52 lakh crore in FY22, compared with Rs 4 lakh crore the previous year.

At the end of the fiscal fourth quarter, Paytm had 70.9 million monthly transacting users on its platform and had deployed 900,000 point of sale terminals on the ground, the company had recently said.

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