Paytm shares rise over 3% on strong July business update
Paytm share price rallied over 3% on Friday after the fintech giant reported strong operating performance for the month of July. The stock gained as much as 3.86% to ₹797.00 apiece on the BSE.
One 97 Communications, the parent company of Paytm, in its monthly business update on Thursday, said its average monthly users rose by 19% on-year to 9.3 crore.
Number of merchants paying subscription for payment devices has reached 82 lakh as of July 2023, an increase of 3.8 lakh devices in the month. The company added 41 lakh new merchant subscriptions over the same month last year.
Payment volumes for merchants or Gross Merchandise Values (GMV) rose 39% YoY to ₹1.47 lakh crore.
“We continue to see increase in GMV of non-UPI instruments like EMI and cards. We are focused on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential,” the company said.
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The loan distribution business of the fintech firm continues to gain scale as it disbursed 43 lakh loans of a total value of ₹5,194 crore in July 2023, a significant growth 148% YoY.
Paytm said it will discontinue monthly disclosures of operating metrics starting September 2023, since their business model “has achieved scale”.
The company will share the disclosures quarterly, it added.
In the quarter ending June 2023, Paytm’s net loss narrowed to ₹358.4 crore from ₹645.4 crore in the same period a year ago.
Paytm shares have witnessed a sharp rally this year on the back of improving operating performance. Paytm shares have gained over 49% YTD and are up 18% in the last three months.
At 11:40 am, Paytm share price was trading 3.14% higher at ₹791.45 apiece on the BSE.
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Updated: 04 Aug 2023, 11:42 AM IST
