We continued to build on our strong growth momentum across core payments and financial services distribution business with revenue from operations increasing 25% YoY to ₹9,978 Cr in FY24. The significant push in revenue was driven by accelerated growth in Gross Merchandise Value (GMV), an increase in device additions, and substantial progress in our financial services sector.
For the first time since our IPO, we have achieved full-year profitability, marked by an EBITDA before ESOP costs of ₹559 crore, a remarkable increase of ₹734 crore from the previous fiscal year. This achievement underscores our ability to drive growth and improve contribution margins.
During the earnings call, our Founder, CEO, and MD Vijay Shekhar Sharma addressed the analysts, reflecting on the journey and achievements of FY24. He highlighted the resilience demonstrated by Paytmers during the challenging months of February and March. Our Founder and CEO expressed satisfaction that the financial results reflect our ability to stay vigilant and adapt to changing circumstances.
He reiterated our commitment to business growth in the payments and financial services sectors, aligning with regulatory requirements and the government’s mission to digitise the formal economy.
Our contribution profit saw a significant increase of 42%, reaching ₹5,538 crore in FY24. This growth was driven by improvements in net payment margins and the expansion of our higher-margin financial services business. Revenue from Payment Services grew by 26% year-on-year to ₹6,235 crore in FY24, with a 7% increase in Q4FY24 to ₹1,568 crore. The overall loan distribution value also saw a substantial rise of 48%, reaching ₹52,390 crore in FY24.
President and Group CFO Madhur Deora provided an overview of our growth in the last quarter, emphasising the significant momentum across our businesses, contributing to almost ₹10,000 crore in revenue. Amid challenges with regulatory directives disrupting certain businesses, we reported Q4 FY24 revenue of ₹2,267 crore, a modest 3% year-on-year decline. Our contribution margin stood at 57% including UPI incentives, and 51% excluding them. Our EBITDA before ESOP for the quarter was ₹103 crore, including UPI incentives, and ₹(185) crore excluding them.
In Q1 FY25, our strategic focus will be on acquiring new merchants, reactivating inactive merchants, and redeploying devices from inactive to new merchants. While we anticipate a smaller net addition of device merchants in Q1 FY25, we expect improvements and a return to past trendlines by Q3 FY25.
Along with emphasising our efforts to activate dormant merchants, Deora also discussed our commitment to providing substantial devices to numerous merchant businesses.
Sharma added that our attention to governance and compliance remains a priority for the coming quarters. “We expect to see more independent board members in our group entities and subsidiaries, reinforcing our commitment to our core payments business,” he said.
For FY25 our strategy includes monetizing through cross-selling financial services in line with regulatory guidelines and expanding our offerings through insurance and equity broking and distribution.
We are excited about the future and remain dedicated to driving sustainable growth and innovation in the digital payments and financial services landscape.
