Paytm's Financial Performance in Q3

One97 Communications, the parent company of Paytm, has reported a consolidated loss of Rs 208.5 crore for the third quarter ending December 31, 2024. This figure represents a slight improvement from the Rs 221.7 crore loss recorded in the same period last year. The reduction in losses can be attributed to lower expenses, including payment processing charges and employee costs.

Revenue Decline and Recovery Efforts

Revenue from operations saw a significant decline of 35.8 per cent year-on-year, dropping to Rs 1,827.8 crore from Rs 2,850.5 crore in the December 2023 quarter. This decrease was primarily due to lower revenues from payments and financial services, payment services, and marketing services. However, there was a 10 per cent increase in revenue quarter-on-quarter, indicating some recovery.

International Expansion and Future Plans

Paytm is not just focusing on recovery but is also planning international expansion. The company has established three overseas subsidiaries of Paytm Cloud Technologies in the UAE, Saudi Arabia, and Singapore. Paytm believes its technology-led merchant payments and financial services distribution business model has potential for expansion in similar international markets.

During the quarter, Paytm’s gross merchandise value (GMV) reached Rs 5 lakh crore, the highest recorded to date. The company’s monthly transacting user base grew to 7.2 crore in December, recovering from a previous drop. Paytm also reported an improvement in its contributing profit by 7 per cent quarter-on-quarter to Rs 959 crore.