Paytm reported its monthly number for March 2022

Paytm has delivered its monthly data for March 2022. 

1) On monthly basis, GMV has steadily risen 105% YoY in March 2022, as compared to the January-February 2022 and 123% YoY in 3QF22. On yearly basis, GMV grew by 110% YoY to Rs.8,520bn in FY22. 

2) Average MTU (implied) growth was steady at 41% YoY in March 2022 on monthly basis. While on quarterly basis, average MTU improved to 70.9mn (up by 41% YoY) vs 64.4mn (up by 37% YoY) last quarter

3) Monthly GMV/average MTU stood at Rs.12,709 (up by 45% YoY) vs. Rs.11,894 in January-February 2022 (up by 45% YoY). Whereas monthly GMV/MTU stood at Rs.12,177 (+45% YoY) in March 22 vs. Rs.12,950 (+63% YoY) last quarter and Rs7,451 in FY21 (+17% YoY). 

4) Total devices deployed rose to 2.9mn vs. 2mn last quarter. During March 2022, PAYTM added 0.3mn devices.

5) Total value of loans disbursed in March 2022 was Rs.14.6bn compared to Rs.11.7bn and Rs.9.2bn in February 2022 and January 2022, respectively. On quarterly basis, in March 2022, loans disbursed were Rs.35.5bn (up by 415% YoY) vs. Rs22bn (up by 364% YoY) last quarter. On a yearly basis, value of loans disbursed stood at Rs.76.2bn (up by 441%) for FY22 vs. Rs.14.1bn in FY21. 

6) Total number of loans disbursed in March 2022 was 2.4mn vs. 2.2mn in February 2022and 1.9mn in January 2022. On quarterly basis, the number stood at 6.5mn (up by 374% YoY) vs. 4.4mn (up by 401% YoY) last quarter. Average ticket size of loans disbursed rose 10% QoQ to Rs. 5,429 vs. Rs. 4,939 last quarter. On yearly basis, the number of loans disbursed stood at 15.2mn (up by 478% YoY) vs. 2.6mn in FY21. 

Risks related to investments: 

On the upside: 

1.    Allowance of merchant discount rate under UPI 
2.    Introduction of interchange on wallets as it turns interoperable 
3.    Better than expected execution on financial services, in terms of underwriting and large bank/NBFC tie-ups

On the Downside 

1.    Higher than expected competitive intensity in payments and/or reduction in payment charges
2.    Weak execution in financial services 
3.    Negative outcome of IT audit at PAYTM payments bank