Paytm Gets a Zomato Lift

22 Oct 2024 , 01:27 PM

Thanks to Zomato, struggling fintech Paytm has managed to outperform expectations—that is, for the time being, anyhow.

As of 1.25 PM on Tuesday, Paytm shares were down 3.57%, trading at Rs 700.00.

Higher revenue growth was anticipated for One97 Communications, the company behind the well-known fintech and digital payments platform Paytm, but Q2 losses were predicted to increase.

It was anticipated that losses for the July–September 2024 period would increase from Rs 290 crore to Rs 660 crore compared to the same time the previous year. In the second quarter of FY 2025, Paytm reported a profit of Rs 930 crore, exceeding forecasts. This was mostly due to a one-time exceptional gain of Rs 1,345 crore from the sale of its entertainment ticketing business to Zomato.

Paytm’s marketing services revenue dropped to Rs 302 crore as a result of the transaction, which was finalised on August 27, 2024, compared to prior quarters. However, revenue was Rs 268 crore when the ticketing sector was excluded. Travel services continued to demonstrate excellent progress, and the company’s credit card distribution increased rapidly, with 13.8 lakh activated credit cards.

The deal, which was worth Rs 2,048 crore, was the outcome of Paytm’s goal to concentrate on the distribution of financial services and payments.

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