Paytm to achieve EBITDA breakeven in 6 quarters; lending hits 6.5 million loan disbursal in Q4FY22

Paytm’s Vijay Shekhar Sharma has written a letter addressing shareholders where he exuded confidence that the company will achieve operating EBITDA (earnings before interest, taxes, depreciation, and amortization) breakeven in the next 6 quarters.

“We are encouraged by our business momentum, the scale of monetization and operating leverage. We expect this to continue, and I believe we should be operating EBITDA breakeven in the next 6 quarters (i.e. EBITDA before ESOP cost, and by the quarter ending September 2023), well ahead of estimates by most analysts. Importantly, we are going to achieve this without compromising any of our growth plans,” he wrote.

Paytm closes Q4FY22 on a Strong Note

The company also recorded stellar growth across all its business segments – be it monthly transacting users, offline payments & devices deployment or partner-based lending. Paytm also shared that it has seen higher user engagement driven by its Super App offerings.

Paytm has seen massive growth in the last quarter of FY22, as per the company’s business update shared with the exchanges — scaled to 6.5 million loan disbursals during the quarter (Y-o-Y growth of 374%), which aggregates to a total loan value of INR INR 3,553 Cr (Y-o-Y growth of 417%), 104% Y-o-Y increase in GMV at INR 2.59 lakh Cr ($34.5 billion) and 41% growth in monthly transacting users to 70.9 million. It continues to lead in the offline payments business, with the total number of devices deployed growing to 2.9 million. Interestingly, the company shared that it deploys 1000 devices per day.

Committed to creating long-term shareholder value

He also addressed the company’s share price in his note and said they are committed to creating long-term shareholder value. “Against the backdrop of volatile market conditions for high growth stocks globally, our shares are down significantly from the IPO. Rest assured, the entire Paytm team is committed to building a successful, profitable company and create long-term shareholder value. Aligned with this, my stock grants will be vested to me only when our market cap has crossed the IPO level on a sustained basis.”

Sharma also spoke of building a strong leadership team at Paytm. “I am proud of the talent that we have in our company and our culture of being ambitious and entrepreneurial. We continue to expand our team with great talent from both the technology and finance industries,” he wrote.

Leave a Reply

Your email address will not be published. Required fields are marked *