One97 Communications Limited (OCL) that owns the brand Paytm, Indias leading mobile payments and financial services company, announced its quarter-ending March 2022 and full financial year FY22 results. The company saw its revenue jump by 77 per cent in FY22 to Rs 4,974 crore from Rs 2,802 crore the previous year.
In Q4 alone, the company's revenue grew 89% on a year-on-year basis to Rs 1,541 crore, while EBITDA (before ESOPs) for the quarter improved 12 per cent year-on-year.
The growth in revenue was led by the increase in consumer and merchant payments and disbursements of loans through its partners on Paytm.
The company's EBITDA loss (before ESOP) for FY22 saw an improvement of 8 per cent year-on-year to Rs 1,518 crore from Rs 1,655 crore the previous year. In addition, the company had Rs 809 crore of non-cash ESOP expenses.
Paytm has reduced EBITDA (before ESOP cost) loss despite making investments in user growth, merchant device deployment and technology. The company's cost structures in Q4 FY 2022 are largely sufficient to support its growth plans in FY 2023. As a result, the company believes it will show accelerated reduction in EBITDA losses and is well on track to achieve profitability (before ESOP) by September 2023 quarter.
Paytm has a strong two-sided ecosystem of consumers and merchants, where it is seeing the monetization strategy kick in to yield results. On the consumer payments side, the company is recording increasing usage of the Paytm app and Paytm Payment instruments. On the merchant payments side, the company serves the entire base of merchants through (i) QR for payments (typically free), (ii) soundboxes (which generate subscription revenues), (iii) card machines (which generate subscription and MDR revenues), and (iv) Payment Gateway for online merchants (which generates MDR revenues and platform fees). Leveraging this distribution and rich insights, Paytm offers financial products to its consumers and merchants, in partnership with financial institutions. (IANS)