We have announced the financial results for Q3FY25 with a continued focus on payments and distribution of financial services for sustained, profitable growth. The company has reported an operating revenue of ₹1,828 Cr for Q3 FY25, marking a 10% sequential growth. This growth was driven by increase in GMV, healthy growth in subscription revenues and increase in revenues from distribution of financial services.
Profit After Tax (PAT) improved significantly by ₹208 Cr QoQ to ₹(208) Cr, reflecting consistent progress toward profitability. EBITDA before ESOP costs improved significantly by ₹145 Cr quarter-on-quarter (QoQ), narrowing to ₹(41) Cr. The company achieved a contribution margin of 52%, with a contribution profit of ₹959 Cr, reflecting a 7% growth compared to the previous quarter.
Our revenue from payment services grew by 8% QoQ to ₹1,059 Cr, supported by an increase in GMV, which reached ₹5.0 Lakh Cr (up 13% QoQ). The merchant subscriber base for devices grew to 1.17 Cr, with a net addition of 5 Lakh new subscribers during the quarter.
You can read the Q3FY25 results here:
During the quarter, we received approval from NPCI to onboard new UPI users, driving an increase in Monthly Transacting Users (MTUs) to 7.2 Cr by December 2024 as compared to 6.8 Cr in September 2024. It plans to drive growth in the consumer base by continuing to develop innovative products, and disciplined investments in brand and performance marketing.
Revenue from financial services surged by 34% QoQ to ₹502 Cr, driven by a higher share of merchant loans, improved collection efficiencies, and increased revenue from the Default Loss Guarantee (DLG) portfolio. It has further increased the number of partners for financial services distribution and continues to see strong interest from various financial institutions to partner with the company.
“We continue to see increased interest from lenders to partner using the DLG model for both Merchant and Personal Loans, which will help to increase disbursements with the existing partners and expand partnership with new lenders,” said the company.
The company distributed merchant loans worth ₹3,831 Cr during the quarter, versus ₹3,303 Cr in Q2 FY 2025, with over 50% of loans provided to repeat borrowers. Personal loans disbursed in Q3 FY25 were worth ₹1,746 Cr, primarily in distribution only model. We have resumed Personal loans for distribution and collection model for a tight cohort of new and repeat customers, who have demonstrated steady asset quality.
Our cash balance stood at ₹12,850 Cr as of December 2024, an increase of ₹2,851 Cr QoQ, largely on account of conclusion of PayPay stake sale and improvement in working capital.
Indirect expenses (excluding ESOP costs) reduced by 7% QoQ and 23% YoY, reflecting the company’s commitment to cost efficiency and productivity improvements. The company continues to optimize its operations by strategically redeploying refurbished devices, resulting in lower capex and enhanced revenue per merchant.
“To further strengthen our market leadership, we are committed to launching innovative, first-of-its-kind payment devices and solutions tailored to diverse merchant needs. Our extensive distribution and service network positions us well to capitalize on this growing market. We believe that tier-2 and tier-3 cities offer significant penetration opportunities and we will further expand our distribution network to onboard more merchants from these markets,” said the company.
With a robust cash balance, the company emphasized that it is well-equipped to seize market opportunities while adhering to a compliance-first approach across all its operations.
We remain grateful for your continuous support and remain committed to our mission to building a profitable company and creating shareholder value while driving digitisation and inclusive financial access
