Paytm shares rise as July-August gross merchandise value grows 72%
Paytm reported a 72% growth in gross merchandise value for July and August. Read more about how the company's business has fared in this two-month period.
Payments aggregator Paytm distributed 6 million loans during July-August 2022, it said in its business update. On a year-on-year basis, that growth translates to 246 percent. The value of these loans stood at Rs 4,517 crore ($568 million), a growth of 484 percent from last year.
Merchant payments volumes or gross merchandise value (GMV) for the two months grew 72 percent year-on-year to Rs 2.10 lakh crore or $26 billion. Paytm defines GMV as the value of total payments made to merchants through app transactions or payment instruments or solutions.
"We continue to work with our partners to review the evolving macro environment and, accordingly, moderation may be expected in our growth. That said, we continue to see ample growth and upsell opportunities in this business and are focusing on the book's quality," Paytm said.
The company's Super App continues to see increased engagement levels, according to the company. The average monthly transacting user or MTU for the two months grew 40 percent from last year to 78.8 million. The company defines a MTU as a unique user with at least one successful transaction during the calendar month.
The company deployed 4.5 million devices nationwide in August at merchant stores. "With our subscription as a service model, the strong adoption of devices drives higher payment volumes, subscription revenues, as well as merchant loan distribution," the company said.
Paytm was India's largest IPO last year before LIC took the throne. The Rs 18,300 crore offer came at Rs 2,150 per share. Since then, shares have more than halved, falling to their 52-week low of Rs 510 earlier this year. CEO Vijay Shekhar Sharma is confident that Paytm will be a profitable company by September 2023.
Sharma was reappointed the MD & CEO of Paytm last month after 99.67 percent of the shareholders voted in his favour. Ahead of the AGM, proxy advisory firm IiAS recommended the board professionalise the management.
"Vijay Shekhar Sharma has made several commitments in the past to make the company profitable. However, these have not played out. We believe that the board must consider professionalizing the management," the firm wrote in its note to shareholders.
Shares of Paytm were trading 1.5 percent higher in early trade at Rs 719.45. Although the stock is up 40 percent from its 52-week low, it is still down by two-thirds from its IPO price.
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First Published: Sept 6, 2022 10:09 AM IST
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