Paytm, India’s leading fintech, reported a significant 32% rise in revenue for Q2 FY 2024-25, reaching ₹2,518 crore, as the company focuses on loan disbursements and merchant subscriptions. The value of loans disbursed surged 122% year-on-year, reaching ₹16,211 crore, driven by robust demand from merchants and consumers. Merchant subscriptions also grew to 92 lakh, reflecting Paytm’s expanding ecosystem.
Despite the positive revenue growth, Paytm’s net loss narrowed to ₹290 crore, compared to ₹571 crore in the same period last year, showcasing the company’s efforts to improve profitability. The contribution margin rose to 57%, supported by the company’s loan distribution business and payment services, which saw a 28% increase in revenue.
Founder and CEO Vijay Shekhar Sharma emphasized the company’s strategic pivot toward financial services. “Our strong growth in loan distribution, combined with steady subscription revenue, underscores our commitment to building a sustainable financial ecosystem,” Sharma said during an earnings call.
However, Paytm’s stock remains under pressure, partly due to market volatility and global economic conditions. Analyst Motilal Oswal observed that despite the growth, the company may face subdued industry outlooks in the near term but remains well-positioned for long-term gains as it adds more lending partners.
