Digital payments giant Paytm has hit a new lending milestone in the first quarter of the financial year 2022-23, clocking a 492% growth in loan disbursals during the quarter.

This aggregates to a total loan value of ₹5,554 crore ($703 million) during the quarter, recording a year-on-year growth of 779%, the company says in a regulatory filing.

The fintech witnessed 101% year-on-year increase in merchant payment volumes (GMV) for the quarter ended June 2022 at ₹2.96 lakh crore ($37 billion).

"Our lending business (in partnership with top lenders) continues to witness accelerated growth with disbursements through our platform now an annualised run rate of over ₹24,000 crore in June," the company says. "The rapid growth of our lending products brings us an attractive profit pool. We are also seeing increases in average ticket size due to the scale-up of the personal loans business in particular," it adds.

The Paytm Super App continues to see heightened consumer engagement for its payment offerings. "We continue to achieve new records in user engagement, with the average monthly transacting users (MTU) for the quarter ending June 2022 at 74.8 million, registering a growth of 49% Y-o-Y. For the month of June alone, the MTU stood at 75.9 million," the company says.

"We continue to strengthen our leadership in offline payments, with deployment of 3.8 million devices at merchant stores across the country. The strong adoption of devices also has a correlation with the rise in merchants eligible for loans from our platform," the fintech adds.

Shares of One 97 Communications, the parent of Paytm, rose 1.55% to ₹709.60 on the BSE on Monday after the payment solutions firm reported strong operating performance for the first three months of the ongoing financial year.

Paytm lending

Paytm hits new milestone, disburses 8.5 million loans in Q1