Paytm Q1FY24 Results: EBITDA before ESOP grows to ₹84 Cr

22Jul

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Technology

Paytm Q1FY24 Results: EBITDA before ESOP grows to ₹84 Cr

Paytm, India's leading payments and financial services company and the pioneer of QR and mobile payments, has announced Q1FY24 results where it has reported a massive improvement in EBITDA before ESOP cost of ₹84 Cr as compared to ( ₹275 Cr) in Q1 FY 2023. The company's revenue from operations has seen a growth of 39% YoY to ₹2,342 Cr.The company's EBITDA before ESOP margin stood at 4% on the account of continuous surge in profitability due to robust revenue growth, increasing contribution margin and operating leverage. This does not include any UPI incentives, since it recorded UPI incentives after government issued the gazette notification, which is generally in the second half (H2) of the financial year. It managed to increase EBITDA while continue investment in growth. It has sea...

30Jun

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Technology

BofA research: Paytm Soundbox, first to bring audio-based payments confirmations, dominates the market

Target price remains unchanged to ₹1,020, with an upside of 20.1%Soundbox is a popular product with smaller shops shows BofA's primary market researchPaytm is India's leading digital ecosystem with 90 mn MTUs and 33.5 mn+ merchantsPaytm, India's leading payments and financial services company and the pioneer of QR and mobile payments, has been racing ahead with its top performance in the Soundbox segment. In its recent report, global brokerage firm BofA has reiterated the dominance of Paytm pioneer product Soundbox. Paytm was the first to launch audio-based confirmations with Soundbox. “We are optimistic on fundamentals and see room for Paytm to scale up aggressively without taking any balance sheet risks. Paytm has key differentiating factors versus peers, and overall competition rem...

13May

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Technology

Can banks handle their own Banking as a Service?

Indian Fintech is big and has helped many an industry achieve low-cost profits and customer experience, and banking is among the top. Indian FinTech is a formidable force to be reckoned with, with the finance ministry saying that the market will reach about US$160 billion by 2025. According to a 2022 report by BLinc Invest, the Indian FinTech market is already the world's third largest. But being a FinTech and being a bank are different things. Yes, India is big on FinTech. But where does Indian banking stand when it comes to controlling its Banking as a Service (BaaS)? The Indian market has been evolving its BaaS business models with many banks having started these initiatives in the past 12-18 months. This has been fuelled by the Central Bank's push towards digitalization. Today,...

6May

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Technology

Paytm Q4: Fintech Giant Reports Revenue of ₹2,334 cr

Paytm, India's leading mobile payments and financial services provider, on Friday reported fourth-quarter revenue that beat analysts' estimates. The company's consolidated revenue from operations rose 51% to ₹2,334 crore in Q4FY2023, compared with consensus estimates of ₹2,305 crore. The company's operating profit, measured by EBITDA before ESOP cost, was ₹234 crore in Q4 beating analyst estimates of ₹144 crore. For the full fiscal year, the company's posted a massive revenue of ₹7,990 crore, an increase of 61% YoY. Paytm's EBITDA before ESOP during Q4, excluding prior quarters' UPI incentives, was ₹101 crore, compared to ( ₹368) crore in Q4 FY2022. Paytm's payments revenue grew by 41% YoY to ₹1,467 crore in Q4FY23, with payment revenue growing 28% YoY after excluding prior qu...

20Apr

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Technology

Paytm posts updated shareholding for Q4 — FPI shareholding almost doubles

Paytm, India's leading payments and financial services company, today filed its revised shareholding pattern for Q4FY23 with the stock exchanges. The company has seen an increase in the shareholding of domestic institutions as well as foreign portfolio investors (FPIs). Domestic institutional shareholding has grown from 1.9% to 3.2% with Mutual Funds (MFs) and Alternate Investment Funds (AIFs) increasing their stake. The overall shareholding of Mutual Funds has increased by almost 1% QoQ with Mirae Asset's stake has grown from 1.1% to 1.8%.Foreign institutional shareholding has seen a jump from 6.7% to 11.5%, with FPIs increasing their stake in the company substantially. FDI shareholding is at 60% as compared to 66% last quarter primarily due to the stake sale by Alibaba. The Chinese e...

18Mar

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Technology

Chinese loan app case: ED charge sheet against Razorpay, fintech firms, NBFCs on money laundering charges

The Enforcement Directorate Friday said it has filed a charge sheet against payment gateway Razorpay, three fintech companies controlled by Chinese nationals and as many NBFCs and some others in a money laundering probe linked to Chinese loan apps which allegedly cheated numerous people.The federal probe agency said in a statement that the special Prevention of Money Laundering Act (PMLA) court based in Bengaluru has taken cognisance of the prosecution complaint (charge sheet). A total of seven entities and five individuals have been named as accused in the charge sheet. The accused entities include fintech companies Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited which are "controlled" by the Chine...

13Mar

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Technology

Paytm MTU reaches 89 mn, steps up offline payments leadership with 6.4 mn devices

Leading digital payments and financial services firm Paytm on Monday said consumer engagement on its Paytm Super App saw robust growth, with the average monthly transacting users (MTU) for the two months ended February 2023 at 89 million, registering a 28 per cent growth year-on-year.The fintech firm said it was seeing consistent growth in merchant payments volume with the total merchant gross merchandise value (GMV) processed through the platform for the two months ended February 2023 aggregating to ₹2.34 lakh crore (USD 28.3 billion), marking a year-on-year growth of 41 per cent. "Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential," said Paytm, pioneer of QR a...

16Feb

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Technology

How UPI has become a strong revenue source for fintech pioneer Paytm

In the Indian financial ecosystem, Paytm became a trendsetter when it launched its mobile wallet and QR payments almost a decade ago. From ‘scan and pay' to ‘tap and pay', Paytm's payment solutions have changed the way everyday transactions are carried out.But what truly sets Paytm apart is its diverse business model and a wide array of services it offers while its competitors are engrossed only on UPI payments so far and are now slowly following Paytm's footsteps into other areas. In fact, OCL's associate Paytm Payments Bank is a leader in UPI P2M payments, as the largest acquiring and beneficiary bank. During the recent earnings call, Paytm Founder and CEO Vijay Shekhar Sharma highlighted that Paytm's focus on merchant payments instead of consumer led UPI payment has created a scala...