There is no winner-take-all competition, Paytm’s Vijay Shekhar Sharma on Jio’s entry
₹2,341 crore, growing 39.4% from last year's same quarter with losses reducing by 45% to ₹358 crore from ₹645 crore in the prior period. This quarter, Paytm's loan distribution business grew by 167% with disbursements of ₹14,845 crore ($1.8 billion). The number of loans distributed was 1.28 crore with a 51% growth year-over-year.
An estimated ₹8039 crore of the total disbursements are made through Postpaid - which is mostly used as an acquisition channel. As a result, Postpaid accounts for 54% of total loans disbursed, compared to 61% last year. An increase of 128% was reported in personal loans to ₹4062 crore yoy.
Postpaid cross-sell continues to see traction for Paytm, with over 40% of personal loans distributed to existing Paytm Postpaid customers in the first quarter of FY 2024. While merchant loans increased 141% yoy to ₹2744 crore in Q1, the number of loans remained flat at 1.4 lakh when compared with Q4 FY2023. The company stated during its earnings call today that this isn't the metric they are chasing.
"Q1 is a time when newer merchants are less interested in taking loans," it explained. While the company did not give details on the loan book, one-third of the total disbursals is estimated as the outstanding loan book – which makes it over ₹4900 crore. “Our commercials are on disbursements and not on loan book but what we broadly understand basis the average maturity of the tenure, if we are disbursing ₹100, about one-third is AUM (asset under management)," Paytm said during its earnings call.
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