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Paytm's Second Act Gains Momentum Through Growth, Profits and AI
Paytm is a company that helps people and businesses make payments.
After facing a regulatory setback, it spent about two years reorganizing its business.
Its latest June-quarter results show that sales and profits are growing.
Paytm earned ₹2,448 crore in operating revenue during the quarter.
Its profit after tax rose to about ₹220 crore.
More merchants and consumers are using Paytm's payment services.
The company is also growing its loans, Postpaid and wealth-product businesses.
Paytm is building a smaller AI model designed for Indian languages.
The company hopes this technology will reduce costs and may eventually be offered to other businesses.
Paytm's June-quarter operating revenue rose 28% year-on-year to ₹2,448 crore.
Quarterly EBITDA increased 182% to ₹203 crore, while profit after tax rose about 79% to ₹220 crore.
Merchant payment volumes grew 31% to ₹7.1 lakh crore, with 1.57 crore merchants subscribed to device plans.
Financial-services distribution revenue rose 45% to ₹814 crore, supported by lending and wealth products.
Paytm is developing AI services for Indian languages and exploring their use by other businesses.
- Who
- Vijay Shekhar Sharma and Paytm, operated by One97 Communications.
- What
- Paytm reported stronger revenue, profits, payment activity and financial-services growth while advancing an AI-focused strategy.
- Where
- Paytm operates in India; Sharma grew up near Aligarh and studied in Delhi.
- When
- The results concern the June quarter; the article also references a regulatory ban in 2024.
- Why
- The company is seeking to turn its large user and merchant base into a disciplined, profitable and increasingly AI-led business.
Key facts
- Operating revenue
- ₹2,448 crore, up 28% year-on-year
- EBITDA
- ₹203 crore, up 182% year-on-year and described as Paytm's highest quarterly EBITDA
- Profit after tax
- About ₹220 crore, up approximately 79% year-on-year
- Merchant payment volumes
- ₹7.1 lakh crore, up 31%
- Monthly transacting users
- 8 crore; customer UPI transaction value grew 45%
- Financial-services distribution revenue
- ₹814 crore, up 45%
- AI model
- A 200-billion-parameter model optimized to 4 billion parameters for Indian languages
Quotes
Vijay Shekhar Sharma
Paytm founder speaking on the company's earnings call
“the past is behind us and now we are having cash in our hand and the aggression in our mind and body”
thehansindia.com
Sources
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