Paytm shares rose about four percent on August 4 after the fintech company posted its monthly business update for the month of July in which it says its average monthly users rose by 19 percent year-on-year to 9.3 crore.
Our loan distribution business (in partnership with our lender partners) continues to gain scale with disbursements of Rs 5,194 crore ($632 million, y-o-y growth of 148 percent) and 43 lakh loans (y-o-y growth of 46 percent) disbursed in the month of July 2023 through the Paytm platform,” Paytm said.
The firm said that to ensure that portfolio performance of its lending partners improves despite economic uncertainties, its credit disbursement growth will be deliberately calibrated over the next quarter or two. “High quality outcomes for our partners enables us to expand our lending partnerships. We currently have 8 lending partners and we aim to onboard 3- 4 partners in FY 2024.
Paytm’s merchant subscriptions stood at 82 lakhs in July, with 41 lakh new subscriptions over the year, according to the filing. The fintech saw merchant subscriptions increase by about four lakh in July 2023, Paytm said in a filing.
The firm also added that from 2023 onwards, it will discontinue monthly disclosures of operating metrics as its business model “has achieved scale.” It will share the disclosures quarterly.
Paytm said it for India’s small shops, it has also launched two new innovative devices – Paytm Pocket Soundbox, a debit-card sized device for merchants on the go, and Paytm Music Soundbox, which allows merchants to connect their phone to it to play music or listen to match commentary.