Fintech firm One97 Communications, which operates under the Paytm brand, on Friday reported narrowing of loss to Rs 358.4 crore.
Fintech firm One97 Communications reported revenue from operations of the company increased by 39.4 per cent to Rs 2,341.6 crore during the first quarter from Rs 1,679.6 crore in the June 2022 quarter
Fintech firm One97 Communications, which operates under the Paytm brand, on Friday reported narrowing of loss to Rs 358.4 crore.
The company had posted a loss of Rs 645.4 crore in the same period a year ago.
The revenue from operations of the company increased by 39.4 per cent to Rs 2,341.6 crore during the reported quarter from Rs 1,679.6 crore in the June 2022 quarter.
The company said that its merchant payments volume (GMV) grew 37 per cent YoY to Rs 4.05 lakh crore in the April-June quarter of FY2023-24.
"Paytm's EBITDA before ESOP margin stood at 4 per cent on the account of consistent improvement in profitability due to strong revenue growth, increasing contribution margin and operating leverage," the statement said.
Paytm said that due to an increase in gross merchandise value (GMV) of non-UPI instruments like EMI and cards, and lower interchange cost for Wallet, post-interoperability circular by NPCI, and Postpaid due to better portfolio quality, Paytm’s net payment processing margin has further improved and is now at the top end of 7-9 basis points range.
Sharing update on the RBI's bar on onboarding of new customers by Paytm Payments Bank, Paytm Chairman, Managing Director and CEO Vijay Shekhar Sharma said that the bank has submitted compliance report to the banking regulator and the same is under review.
During financial year (FY) 2022, RBI had directed the Paytm Payments Bank (PPBL) to stop the onboarding of new customers with effect from March 1, 2022.
During FY 2023, RBI appointed an external auditor for conducting a comprehensive systems audit of the PPBL.
On October 21, 2022, PPBL received the final report thereof from RBI outlining the need for continued strengthening of IT outsourcing processes and operational risk management, including KYC etc at the Bank.
"Pursuant to a supervisory engagement thereafter, RBI recommended remediating action steps (including fiurther steps to be taken by the Bank) in a time-bound manner.
The Bank has submitted the compliance to these instructions of RBI and the same is currently being reviewed by RBI," Sharma said.