Paytm expects 40-50% growth in credit business annually over 2-3 years
One 97 Communications, the parent of Paytm, expects overall credit business to grow at an average annual rate of 40%-50% over the next two to three fiscal years even as it continues a cautious approach to the personal loan vertical, president and chief operating officer Bhavesh Gupta said on Saturday.
The Noida-headquartered company is looking to add three new lending partners to its platform over the next two quarters, which may include a domestic bank, Gupta said on an analysts’ call to discuss September quarter earnings.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Professional Certificate in Product ManagementVisitNorthwestern UniversityKellogg Post Graduate Certificate in Product ManagementVisitIndian School of BusinessISB Product ManagementVisitOver the last two quarters, Paytm – which acts as a loan distributor for its nine lending partners – has forged partnerships with Tata Capital and Shriram Finance for credit and is currently running pilots with both. These new partners will officially begin issuing credit on Paytm’s platform by November, which also coincides with the Diwali festival when credit demand is expected to rise.
“Personal loans for the foreseeable future, at least for the next couple of quarters, will remain muted. We would not see the 100%-150% growth as seen in previous years for the category. My sense is 30-40% growth year-on-year on our base is what we can expect in personal loans. Merchant loans will be growing at a higher rate,” Gupta said.
He said merchant loans are expected to grow 50%-60% annually, helped by growth in its Soundboxes as well as the eligible base of merchants meeting lenders’ risk criteria.
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