The average ticket size of personal loans availed through Paytm’s platform has increased in Q2FY23, indicating that the company’s loan distribution business in partnership with financial institutions is gaining momentum every quarter.
In the personal loans segment, the average ticket size of loans availed by consumers this quarter increased 7% quarter-on-quarter (QoQ), and is currently at approximately Rs 110,000 with average tenure of 14 months.
The number of Personal Loans disbursed grew 555% YoY in Q2 FY 2023, while the value of Personal Loans grew 736% YoY to ?2,055 crore. The company added that cross-sell from Paytm Postpaid continues to see traction with over 40% of personal loans disbursed in the quarter to existing users.
Meanwhile, the average ticket size of merchant loans remained consistent in the second quarter of the year, approximately at Rs 1,50,000 with average tenure of 12 months. The number of Merchant loans disbursed grew 254% YoY in Q2 FY 2023, while the value of Merchant Loans grew 342% YoY to Rs 1,208 crore.
The company added that repeat loans continue to see a healthy take up with 50% of merchants having taken a loan more than once, while more than 85% of merchant loans disbursed this quarter was to businesses with a deployed Paytm payment device.
Paytm maintained its strong growth momentum in Q2FY23, reporting a 76% YoY growth in revenue to Rs 1,914 crore. The company’s contribution profit has also grown 224% YoY to Rs 843 crore, while EBITDA (Before ESOP Cost) has witnessed an YoY improvement of 61% or Rs 259 crore.
