Paytm’s stock was on the rise on Friday morning after the fintech operator improved its payment volumes for July while managing to significantly improve its loan business.
Paytm July sales volumes: Paytm witnessed a 39% year-on-year increase in merchant payment volumes in July, reaching ₹1.47 lakh crore, according to its Aug. 3rd regulatory filing. The stock also seems to be taking strength as its new-age tech stock peer Zomato posted its first profit.
Its loan distribution business grew dramatically, marking a 148% increase on-year, amounting to ₹5,194 crore. The company distributed 43 lakh loans in July, a 46% rise compared to the same period last year. Paytm emphasised its commitment to superior credit quality, stating it will carefully manage credit disbursement growth in the upcoming quarters in light of economic uncertainties.
Paytm also reported an increase in average monthly transacting users (MTU), rising 19% from the previous year to reach 9.3 crore in July. The company launched two new devices – the Paytm Pocket Soundbox and Paytm Music Soundbox – continuing its leadership in payment monetisation.
Improving finances: Paytm’s financial health also appears to be improving. In the quarter ending June 2023, Paytm reduced its net loss to ₹357 crore, a significant decrease from ₹644 crore in the same quarter the previous year. Furthermore, company revenue rose 40%, reporting ₹2,342 crore compared to ₹1,680 crore in the year-ago period.
Price Action: One 97 Communications Ltd. shares were trading 2.74% higher at ₹788.55 shortly after markets opened for trading on Friday.
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