One97 Communications, a provider of digital financial services that operates under the Paytm name, said on Friday that its fourth-quarter deficit had shrunk to Rs 167.5 crore.
In the same time the previous year, the firm reported a loss of Rs. 762.5 crore.
In the quarter under review, the company's consolidated revenue from operations increased 51.5% to Rs 2,334.5 crore from Rs 1,540.9 crore in the March quarter of FY22.
One97 Communications said that its loss decreased from the previous fiscal year's Rs 2,396.4 crore to Rs 1,776.5 crore for the year that ended on March 31, 2023.
In FY23, the company's operating revenue increased by almost 60% from FY22's level of Rs 4,974.2 crore to Rs 7,990.3 crore.
“Our 61 percent YoY revenue growth for FY2023 was driven by payments monetisation and growing scale of our loan distribution business,” the firm said in a statement.
The business said that it reached operational profitability (EBITDA before ESOP) in the second half of this year and added, “We believe we can continue our growth momentum and improve our profitability further.”
The firm said that “we have made sizeable investments towards sales manpower, improvement of technology platform, marketing spends, etc., which will help us carry this momentum.”
It claimed that the rise in GMV, increased merchant subscription fees, and growth of loans disbursed via its platform were the main drivers of the 51% YoY revenue growth in Q4FY23.
We are encouraged by the long-term prospects for revenue growth and profitability across the payment and lending businesses as we enter the next fiscal year of 2024. Numerous unexplored potential are presented by the expansion of UPI and other mobile payment options, it stated.
The business said that it is ready to take advantage of these chances by offering its clients cutting-edge items.
“Since February 2023, when we introduced our UPI Lite platform, we have already signed up 55 lakh consumers. Full KYC Paytm Wallet would be globally accepted on all UPI QRs and online retailers thanks to NPCI's wallet interoperability requirements, it stated.
According to the business, India has the potential to soon have at least 10 crore merchants and more than 50 crore payment consumers.
According to the statement, “We will continue to invest in consumer marketing and expand merchant acquiring sales teams given this large scale of opportunity and our ability to monetise our customer base.”
The firm said that stronger GMV and more subscription income are driving its payment business' continued expansion.
“Payments revenue increased by 41% YoY to Rs 1,467 crore in Q4 FY 2023. Payment revenue increased 28% YoY when the current quarter's UPI incentive is excluded.