With digital payments becoming a new normal, we being the pioneer of digital payments solutions in the country are driving robust growth momentum. Our innovative and iconic Paytm products which are widely accepted and trusted by crores of merchants in the country are one of the reasons behind the strong growth trajectory.
This is reflected in the surging revenue growth of our company while crossing a crucial milestone every quarter. We achieved operational profitability for the first time in Q3FY23, and we further strengthened it in Q4FY23.
In the recent March quarter, our revenues grew 51% YoY to Rs.2,334 crore driven by high merchant subscription revenues and the growing scale of our loan distribution business. In FY23, our revenue from operations jumped 61% YoY to Rs.7,990 crore.
Our army of 79 lakh merchants that pay us subscriptions for our payment devices like Paytm Soundbox and POS machines have aided our company in achieving aggressive growth.
The average Monthly Transacting Users stood at 9.2 crore, growing by 23% YoY in Q1 FY24, as the adoption of mobile payments for consumers and merchants in India continues.
With the rise in monthly transactions, the Gross Merchandise Value (GMV) also increased handsomely by 37% YoY to Rs.4.05 lakh crore for Q1 FY24. The impressive growth reflects the increasing acceptance of our QR and Paytm Soundbox.
Adding to it, incentives from the government for UPI and subscription revenue from merchants are also driving our payments business. We received a UPI incentive of ₹49 crore in the March quarter from the government. Total UPI incentive for FY23 stood at Rs.182 crore, which grew 102% YoY.
The fact that we have made significant investments towards sales manpower, improvement of technology platform, marketing spends, etc ensures the strong growth momentum would continue.
Our Founder and CEO Vijay Shekhar Sharma believes payments and financial services distribution business are the growth drivers of the leading fintech company. Our next milestone is to make Paytm’s free cash flow positive in the near future.
“I am very proud of our team which has delivered such amazing results through their clinical focus on execution and quality business metrics. Our focus on quality revenues has led to more rupee to the bottom-line and our incremental business continues to generate better margins,” said Mr. Sharma in a letter to shareholders.