Paytm reported rapid growth of 224 percent in the loan disbursal business. The Vijay Shekhar Sharma-led firm also observed an increase in monthly transactions in the September quarter.
The loan distribution business of fintech giant Paytm surged to new high as the annual run rate of the company touched Rs 34,000 crore in September. In a regulatory filing, the Vijay Shekhar Sharma-led company said “we continue to see growth and upsell opportunities in this business, while we work with our partners to remain focused on the quality of the book.”
Despite multiple controversies and weak stock market listing last year, the company witnessed a significant increase in terms of loan disbursals. Owned by the parent company, One97 Communications, Paytm reported a 224 per cent increase in the number of loans disbursed.
As per the filing, as of September quarter of 2022, the disbursal numbers touched 92 lakh.
Paytm is also observing major growth in offline operations as well. The company reported deployment of 48 lakh devices at merchant stores across the country. The company reported a 39 per cent annual growth in monthly transactions. For the second quarter, the number of users reached 7.97 crore. The gross merchandise value stood at Rs 3.14 lakh crore for the current year.
Meanwhile, global brokerage firms have upgraded Paytm stock. The US-based investment bank JP Morgan said that the company has moved away from “growth at any loss” to “profitability at scale”. It also suggests that Paytm shares have the potential to touch the Rs 1000 mark in the market.
Goldman Sachs has said in a report that it can go up to Rs 1,100 per share.