Paytm IPO: One 97 Communications Q2 revenue rise 64%

Shares of One97 Communications extended their gains for the third straight day after seeing a disappointing debut on the stock exchange.

On November 25 at 01:51 pm, the stock was trading 2.4 percent higher at Rs 1,794 on the BSE. It hit an intraday high of Rs 1,875, which was more than 45 percent higher from it's all-time low of Rs 1,271.25 hit on November 22.

"The growth of non-UPI GMV has driven continued payments revenue growth, and our UPI-led payment volume growth is translating to a significant ramp up of our financial services offering. We are driving digital payments and financial services penetration and widespread adoption across India. Paytm has seen a strong second quarter of FY22, which is a testimony to the strong two-sided ecosystem of consumers and merchants that we have built. We have maintained the growth momentum in our payments services business, expanded our financial services business aggressively and are on our way to pre-COVID volumes for Commerce and Cloud services," the company said in a statement.

Paytm also said that it has transferred it's online Payment Aggregator business to Paytm Payments Services in a bid to comply with RBI's new guidelines for Payment Aggregators and Payment Gateways which will come into effect on January 1, 2022.

The guidelines mandate that e-commerce marketplaces cannot continue providing PA services, but they can continue to do so if the PA service is separated from the e-commerce marketplace business.

On the IPO proceeds, the company which recently launched Rs 18,300 crore public listing said it will provide an update on utilisation effective next reporting period following the actual utilisation of the funds.

Paytm which is heavily focussing on the financial services segment also said it disbursed 2.8 million loans in the quarter under review, double as compared to the previous quarter.