Paytm, the fintech giant, announced its financial results for the third quarter of FY25, reporting a revenue of ₹1,828 crore, marking a 10% sequential growth compared to the previous quarter. This increase in revenue was driven by a rise in Gross Merchandise Value (GMV), strong growth in subscription revenues, and higher revenues from financial services distribution. Despite the positive growth, Paytm reported a net loss of ₹208 crore for the quarter, an improvement of ₹208 crore from the previous quarter’s loss of ₹416 crore, signaling progress toward profitability.

The company's revenue from its payment services segment saw a solid 8% quarter-on-quarter increase, amounting to ₹1,059 crore, fueled by a 13% rise in GMV, which reached ₹5.0 lakh crore. Additionally, Paytm’s merchant subscriber base grew by 5 lakh new subscribers, reaching a total of 1.17 crore, reflecting the company’s ability to continue expanding its market presence. This growth in payment services was further supported by the company’s successful onboarding of new UPI users, pushing Monthly Transacting Users (MTUs) to 7.2 crore by December 2024.

Financial services revenue surged significantly by 34% quarter-on-quarter to ₹502 crore. The growth in this segment was driven by an increased share of merchant loans, improved collections, and a stronger Default Loss Guarantee (DLG) portfolio. Paytm distributed ₹3,831 crore worth of merchant loans, a 16% increase from the previous quarter, and also resumed distribution of personal loans, with ₹1,746 crore disbursed during the quarter. The company’s robust partnership network with financial institutions continues to strengthen its position in the growing financial services market.

On the cost side, Paytm managed to optimize its operations, with indirect expenses excluding ESOP costs falling by 7% quarter-on-quarter and 23% year-on-year. The company reduced its payment processing and marketing costs significantly by 42% and 48.7%, respectively, contributing to narrowing its losses. Employee benefits, the company’s largest cost center, decreased by 36%, totaling ₹756 crore for the quarter. This focus on cost efficiency, combined with increased revenue, allowed Paytm to reduce its overall expenditure from ₹3,216 crore in Q3 FY24 to ₹2,220 crore in Q3 FY25.