Paytm Q2 results: Net loss widens, company says maintained growth momentum
Founded in 2010 as a platform for adding credit to mobile phones, Paytm grew rapidly in 2016 after India banned high-value currency notes, boosting digital payments. It made a weak debut on the stock market earlier this month.
One97 Communications, the parent firm of digital payments company Paytm, announced the financial results of its second quarter (ending September 30) on Saturday, in which it said that its net loss widened by 8.4 per cent to ₹474 crore, from ₹437 crore a year ago.
Paytm also saw its revenue going up by 64 per cent year-on-year, driven by non-UPI payment volumes (GMV) growing by 52 per cent, One97 said in an exchange filing on Saturday.
Financial services also recorded more than strong growth, the statement added.
"We have maintained the growth momentum in our payments services business, expanded our financial services business aggressively and are on our way to pre-Covid volumes for Commerce and Cloud services," Paytm's management said in a statement. The company said it was "well funded" with a cash equivalent and investable balance of ₹110 billion, including through the initial public offering (IPO).
"Paytm has seen a strong second quarter of FY22, which is a testimony to the strong two-sided ecosystem of consumers and merchants that we have built," the statement added.
This is for the first time that Paytm has reported its earnings publicly since this month's stock market debut.
Paytm, which counts China's Ant Group and Japan's SoftBank Group Corp among its backers, raised $2.5 billion in what was India's biggest IPO this month, but made a dismal debut on the stock exchanges last week.
The stock has recouped some of its initial losses but remains 17 per cent below its issue price.
Founded in 2010 as a platform for adding credit to mobile phones, Paytm grew rapidly after US ride-hailing firm Uber Technologies Inc listed it as a quick payment option in India. Its use jumped in 2016 when India suddenly banned high-value currency notes, boosting digital payments.
Paytm, headquartered in Noida near national capital Delhi, offers services including merchant payments, insurance and gold sales, movie and flight ticketing, and bank deposits and remittance.