Paytm shares rise as July-August gross commodity value rises 72%

By CNBCTV18.COM IST (Released)

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Paytm saw 72% growth in gross merchandise value for July and August. Learn more about how the company’s business fared during this two-month period.

Payments aggregator Paytm distributed 6 million loans in July-August 2022, it said in its business update. On an annual basis, this growth translates to 246%. The value of these loans stood at 4,517 crore rupees ($568 million), a growth of 484% over last year.

Merchant payment volumes or Gross Merchandise Value (GMV) for the two months increased by 72% 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 as a result moderation can be expected in our growth. That said, we continue to see many growth and upsell opportunities in this sector and we focus on the quality of the book,” says Paytm.

The company’s Super App continues to see increased levels of engagement, according to the company. The average monthly transaction user or MTU for the two months increased 40% from last year to 78.8 million. The company defines an MTU as a unique user with at least one successful transaction in the calendar month.

The company rolled out 4.5 million devices nationwide in August in merchant stores. “With our subscription-as-a-service model, strong device adoption is driving increased payment volumes, subscription revenue, as well as merchant loan distribution,” the company said.

“Vijay Shekhar Sharma has made several commitments in the past to make the business profitable. However, these have not materialized. We believe the board should consider professionalizing the management,” the company wrote in its statement. note to shareholders.

Shares of Paytm were trading up 1.5% in early trading at Rs 719.45. Although the stock is up 40% from its 52-week low, it is still down two-thirds from its IPO price.

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