Paytm Money Achieves Profitability, Records INR 131 Crores in Operating Revenue During FY23

In a significant development, Paytm Money, a leading trading platform and SEBI-registered investment adviser, has reported a remarkable turnaround in its financial performance. The company managed to post a net profit of INR 42.8 Crores in the fiscal year 2022-23 (FY23), marking a substantial shift from the INR 10.7 Crores net loss incurred in the previous fiscal year. This transformation was primarily driven by the consistent growth in brokerage income.

Paytm Money, a wholly-owned subsidiary of One97 Communications Ltd, recorded a notable 105% surge in its operating revenue, reaching INR 131.3 Crores in FY23, compared to INR 64.1 Crores in FY22. The firm's income from fees and commission escalated to INR 121 Crores during the reporting period, surging from INR 64.1 Crores in FY22. Notably, brokerage income witnessed an impressive year-on-year (YoY) increase of 140%, amounting to INR 112 Crores in FY23. Additionally, income from depository services also exhibited robust growth, rising by 25.5% YoY to INR 5.9 Crores.

Founded in 2018, Paytm Money competes with prominent players in the investment advisory and trading industry such as Zerodha, Groww, and Upstox, among others. During the fiscal year under review, fees and commissions accounted for 92% of the platform's total operating revenue, while the remaining came from interest income, which expanded to INR 10.3 Crores in FY23 from approximately INR 8 Crores in the previous fiscal year.

Considering other sources of income, Paytm Money's total revenue for FY23 reached INR 132.8 Crores, marking a significant increase from the INR 68.8 Crores recorded in the previous year. However, the company also experienced growth in total expenses, which grew by 13.2% to INR 90 Crores in FY23 from INR 79.5 Crores in the preceding year. Employee benefit expenses constituted a significant portion of the expenditure, with INR 16.8 Crores allocated towards this category in the reported year, compared to INR 22.8 Crores in FY22.

Additionally, subcontract expenses surged to INR 14.7 Crores in FY23, up from INR 7.9 Crores in the previous year. Paytm Money also invested INR 10.1 Crores in business promotion during the fiscal year under review, as opposed to INR 3.4 Crores in FY22. However, the company's payment gateway expenses declined by over 30% YoY to approximately INR 3 Crores in FY23, and connectivity charges dropped by more than 39% YoY to approximately INR 12 Crores.

As part of its ongoing efforts to enhance its platform offerings, Paytm Money introduced a bonds platform earlier in the year. This platform enables retail investors to participate in the debt market, expanding their investment options.

It is noteworthy that while Paytm Money achieved profitability, its parent company, One97 Communications Limited, which operates Paytm, continued to incur losses. In Q1FY24, the consolidated net loss for One97 Communications Limited narrowed by 44.5% YoY to INR 358.4 Crores. For the full fiscal year FY23, the net loss stood at INR 1,776.5 Crores.