Borrowing money

Paytm sees losses as it recovers from IPO fallout

Digital payment service Paytm posted a bigger loss last quarter as it tried to recover from a painful IPO last November, Bloomberg reported on Friday (February 4).

Its parent company, One97 Communications, reported a loss of $104 million, or 7.8 billion rupees, for the December quarter. This compares to a loss of 4.74 billion rupees in the previous quarter.

However, the company’s revenue increased by 34% to Rs 14.6 billion.

The IPO in question raised $2.5 billion last year, but after that there was a sharp decline in the share price, with Bloomberg writing that investors invested Rs 2,150 per share , then immediately saw it plunge, closing that day at 953.3 rupees.

Stock market activity had been painful for the company’s early backers, with market capitalization falling to 618 billion rupees. Investors will now look at the new quarterly numbers to see if Paytm can turn profitable.

Figures show consumer and merchant payment services grew by 60% and 117% respectively, and the company’s partners dispensed 4.4 million loans worth around Rs 21.8 billion during the quarter.

Last month, PYMNTS reported that Paytm had partnered with lending firm Fullerton to offer lending products. The partnership will bring Paytm Postpaid, the company’s buy now, pay later (BNPL) product, to more customers with Fullerton’s scale and capability for in-depth risk assessment.

See also: Paytm, Fullerton, partner on consumer loans

The companies also plan to expand their offerings and offer digitally oriented personal loans, disbursed with Paytm technology and Fullerton’s pan-India reach.

“We have seen great consumer and merchant adoption of lending products on our platform,” said Bhavesh Gupta, CEO of Paytm Lending. “We believe there is a huge opportunity to provide access to credit to traders in small towns and villages.”

Meanwhile, Fullerton India CEO and Managing Director Shantanu Mitra said the companies both understand the importance of having quick and convenient credit for small businesses.

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