Paytm is a wallet-enabled payment processing solution offering startup that announced a 10.5 percent increase in operational revenue to Rs 1,659.5 crore in the first quarter of FY25. The startup provides an online platform for mobile recharge, bill payment, money transfer, travel booking, and more.
The application offers its payment processing solutions to businesses and individuals. The payment services are the company’s primary source of revenue. The startup also provides business and consumer payment solutions with POS and billing software.
Entrackr mentioned in its report that the firm earns its income from financial services, the sale of devices, and commissions. The company also earns revenue from interest on deposits and investments. The payment services account for 59 percent of the total operating income and increased 9 percent QoQ to Rs 981 crore in the second quarter of this financial year.
The online platform also allows users to record the detailed history of transactions. The payment services accounted for over half of the total operating revenue in Q2 FY25. The company has raised over 3.48 billion USD across multiple funding rounds since its inception, including 1.26 million USD raised during the angel round led by Mark Schwartz and other investors.
The data intelligence platform, tracxn mentioned that the company’s post-money valuation is around 15.6 billion USD. The platform allows users to shop multi-category consumer products through its online application. The employee benefits account for 38 percent of the total expenses and decreased by 11.2 percent to Rs 709 crore in Q2 FY25. However, technical, finance, legal, software, and other expenses decreased this time compared to the first quarter of this fiscal year.
The total expenditure of the firm decreased by 9.4 percent to Rs 2,244.8 crore in the second quarter of FY25. The startup reported a huge decrease in its losses and turned profitable. Paytm posted a profit of Rs 930 crore for this quarter. The Noida-based startup offers a secure and seamless payment platform. The company intends to maintain its profitability by reducing operating expenses and employee benefits.
The fintech firm is focused on improving its business model while offering more innovative payment solutions, positioning it well in the fintech market. The EBITDA margin also improved by Rs 359 crore on a QoQ basis but it remained negative at Rs 186 crore in Q2 FY25. The company faces competition with other companies in the same segment such as PhonePe.
Conclusion :
Paytm announced a 10.5 percent increase in its operational revenue to Rs 1,659.5 crore in the second quarter of FY25. This payment processing platform provides an online platform offering financial services for businesses and individuals. This online platform offers wallet-based payment solutions to consumers and businesses.
These payment services and income from financial services are the company’s primary sources of revenue. The startup reported a profit of Rs 930 crore and turned profitable for this quarter. The total expenditure of the firm decreased by 9.4 percent and crossed Rs 2,244.8 crore in the same duration. Paytm competes with other digital payment platforms such as PhonePe and MoneyGram.
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