One97 Communications : General updates

UPDATE ON THE OPERATING PERFORMANCE OF THE COMPANY DURING

FOURTH QUARTER OF FISCAL 2022 (FEBRUARY 2022 UPDATE)

Paytm achieves highest ever monthly loan disbursals; sees sustained growth in payments business

• Lending business scales to 4.1 million loan disbursals during the first two months of the quarter (y-o-y growth of 449%), with approximately 2.2 million loans disbursed in February 2022 alone. This aggregates to a total loan value of INR 2,095 Cr (y-o-y growth of 366%)
• Offline payments business accelerates with number of devices deployed growing to 2.6 million
• User engagement continues to rise rapidly with average monthly transacting users (MTU) at 69.5 million, up 41% y-o-y
• Over 105% Y-o-Y increase in GMV for the first two months of the quarter at INR 1,65,333 Cr ($22.2 billion). GMV is the merchant payments processed through all instruments (Paytm Wallet, Paytm Payments bank account, other banks netbanking, credit and debit cards, UPI etc)

Lending records highest monthly disbursal: With increased partnerships with established NBFCs, we saw that the number of loans disbursed through our platform grew 449% y-o-y to 4.1 million loans in first two months of the quarter, while the value of loans disbursed was INR 2,095 Cr (y-o-y growth of 366%)

Volume of merchant payments witnesses sharp increase: GMV is the merchant payments processed through all instruments (Paytm Wallet, Paytm Payments bank account, other banks netbanking, credit and debit cards, UPI etc). The total GMV processed through our platform during the first two months of the quarter aggregated to approximately INR 1,65,333 Cr ($22.2 billion), marking a y-o-y growth of 105%.

Increased active user engagement: We continued to see an increase in user engagement on the Paytm platform, with average monthly transacting users (MTU) in the first two months of the quarter at 69.5 million, growth of 41% Y-o-Y.

1. Average MTUs for a quarter is the average of MTUs for each month in the quarter

Offline payments leadership grows: Our offline payments business strengthens as more merchants adopt Paytm payment instruments. As of February 2022 end, our total devices deployed stood at over 2.6 million.

The Reserve Bank of India ("RBI") directed our associate, Paytm Payments Bank Limited (PPBL), to temporarily halt onboarding of new customers, via a letter dated March 11, 2022. The bank is taking immediate steps to comply with RBI directions. This does not impact any existing customers of PPBL, who can continue to use all banking and payment services without interruption. All existing users of Paytm UPI, Paytm Wallet, Paytm FASTag, and bank accounts can continue to use these instruments, including debit cards and net banking, for payments. New users can also sign up on the Paytm app, and transact by a) creating UPI handles and linking them to their bank accounts, or b) by using third party payment instruments, for transactions on the Paytm app. Users can not, until further notice, sign up for new PPBL wallets or PPBL savings or current accounts.

Paytm believes that the measures imposed upon PPBL will not materially impact Paytm's overall business. This direction does not have an impact on the services that Paytm provides in partnership with other financial services institutions.

The table below summarizes the key operating metrics as highlighted above.

				For quarter ending					For First two months of the
											quarter
								Dec-21		Jan-21	Jan-22		y-o-y
		Dec-20	Mar-21	Jun-21	Sep-21	Dec-21		y-o-y		and	and Feb-
					growth
								growth		Feb-21	22
GMV	INR	112	127	147	196	250		123%		81	165		105%
'000 Cr
Average MTU	million	47.1	50.4	50.4	57.4	64.4		37%		49.4	69.5		41%
Number of loans
disbursed through	million	0.9	1.4	1.4	2.8	4.4		401%		0.7	4.1		449%
Paytm
Value of loans
disbursed through	INR Cr	468	687	632	1,257	2,181		366%		449	2,095		366%
Paytm
Total devices deployed
(cumulative, end of	million	0.6	0.8	0.9	1.3	2.0		n/a		0.8	2.6		n/a
period)

Notes:

1. Exchange rate used $1 = INR 74.5
2. GMV is defined as the value of total payments made to merchants through transactions on our app, through Paytm payment instruments or through our payment solutions, over a period. It excludes any consumer-to-consumer payment services such as money transfers
3. MTU: Monthly Transacting User or unique users with at least one successful transaction in a particular calendar month
4. Total loans disbursed by financial institution partners through our platform include both consumer loans and merchant loans, and excludes the number and the value of loans sourced by third parties through advertising on our platform, and aggregation of EMIs on our POS devices