Paytm Reports Rs 208 Crore Loss in Q3 2024
In a recent update, One97 Communications, the parent company of Paytm, disclosed a consolidated loss of Rs 208.5 crore for the third quarter ending December 31, 2024. This news comes as a slight relief compared to the previous year’s loss of Rs 221.7 crore during the same period. The reduction in losses can be attributed to decreased expenses, particularly in payment processing charges and employee costs.
Revenue Decline and International Expansion Plans
Despite efforts to curb losses, Paytm faced a significant decline in revenue from operations, which plummeted by 35.8% year-on-year to Rs 1,827.8 crore, down from Rs 2,850.5 crore in the December 2023 quarter. The drop in revenue was driven by lower earnings across various sectors, such as payments and financial services (34%), payment services (40%), and marketing services (48%). However, there was a silver lining as revenue showed a 10% quarter-on-quarter increase.
The company is now setting its sights on international expansion, having established three overseas subsidiaries of Paytm Cloud Technologies in the UAE, Saudi Arabia, and Singapore. Paytm is confident in its technology-led merchant payments and financial services distribution business model, believing it has the potential for success in international markets.
Growth in Monthly Transacting User Base and Cash Balance
During the quarter, Paytm’s gross merchandise value (GMV) hit a record Rs 5 lakh crore, indicating a positive trend in transaction volume. Additionally, the company’s monthly transacting user base saw an increase to 7.2 crore in December, bouncing back from a dip to 6.8 crore in September 2024 due to restrictions on Paytm Payments Bank.
Paytm’s cash balance also saw a significant boost, reaching Rs 12,850 crore, mainly attributed to a stake sale in the Japanese payments firm PayPay to SoftBank Group for Rs 2,372 crore. Moreover, the company reported a 7% quarter-on-quarter improvement in contributing profit, excluding certain charges and expenses.
