Indian fintech giant Paytm has released its financial performance figures for FY23, revealing a substantial revenue of Rs 7,991 Crore for the fiscal year.
This places Paytm in a leading position within the Indian fintech landscape, far ahead of competitors like PhonePe and GooglePay. Paytm’s Q4 revenues of Rs 2,334 crore outpaced PhonePe’s first nine months of calendar year 2022 revenues of Rs 1,912 crore. The success of Paytm can be linked to its business diversification – notably its emphasis on merchant payments, a revenue-generating area for the company – in contrast to PhonePe and Google Pay, which largely focus on UPI P2P transactions.
Paytm saw a significant boost in UPI rewards during the fourth quarter, increasing them by an astounding 101 per cent year over year to reach Rs 182 crore. By providing a wide variety of payment instruments, including Wallet, UPI, Postpaid, Food Wallet, Fastag, and numerous banking products accessible through Paytm Payments Bank, Paytm has built a considerable competitive advantage in the industry. This extensive selection of choices has helped Paytm to stand out in the market.
Paytm offers a range of offline transaction devices including Paytm QR code, Android Smart POS, EDC (Electronic Data Capture) devices, IoT devices, and the soundbox. Additionally, the company has established a robust lending business, witnessing a remarkable 364 per cent increase in the value of loans distributed through its platform.
In Q4 of FY 2023, revenue from financial services and other sectors experienced significant growth, rising by 183 per cent year-on-year to reach Rs 475 crore. For the entire fiscal year, revenue from financial services and others surged by 252 per cent, amounting to Rs 1,540 crore.
These accomplishments have contributed to Paytm’s profitability. The company, which achieved operating profitability in the third quarter, further strengthened its position, reporting Rs 101 crore in operating profit. Paytm’s EBITDA before ESOP costs also showed remarkable improvement, with an increase of Rs 1,342 crore for the full year, effectively silencing critics.