Paytm Money, the trading platform and a wholly-owned subsidiary of One97 Communications, has managed two-fold growth in its scale in FY23. Importantly, the firm has also come into a positive bottomline territory.
Paytm Money’s operating revenue surged to Rs 131.3 crore during FY23 from Rs 64.1 crore in FY22, according to its standalone financial statements filed with the Registrar of Companies (RoC).
Financials FY23
Operating Revenue
Total Expenses
Profit / Loss
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Paytm Money Limited operates as a SEBI-registered Investment Adviser (IA), providing investment services encompassing mutual funds, stock market, NPS retirement plans, among others.
Income from brokerage and depository services were the primary source of revenue for Paytm Money. Check TheKredible to decode revenue streams for Paytm Money. The company also has its other income (non-operating) of Rs 1.5 crore from the gain on financial instruments.
When it comes to cost, expenses on employee benefits formed around 30% of the overall expenditure which increased by 17.5% to Rs 26.8 crore during FY23. This includes Rs 7.82 crore as ESOP costs which were settled in cash.
Paytm Money witnessed a rise in advertising and subcontract expenses, while surprisingly, costs associated with connectivity, KYC, and payment gateway services decreased in the previous fiscal year. View expense pattern of the company on TheKredible.
Expense Breakdown
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- Employee benefits expense
- Advertising promotional expenses
- Connectivity charge and KYC cost
- Payment gateway expenses
- Subcontract Expenses
- Others
According to separate filings, Amit Kapoor (chief financial officer), Gaurav Pandit (company secretary), and Deepankar Sanwalka (director) resigned from the company during the fiscal year ending March 2023.
With a 2X growth in scale and control on overheads, the company posted a profit of Rs 42 crore during FY23 as compared to Rs 10.72 crore loss in FY22. Its ROCE and EBITDA margins stood at 40.46% and 33.19%. On a unit level, Paytm Money spent Rs 0.69 to earn a rupee in FY23.
FY22-FY23
| FY22 | FY23 |
| EBITDA Margin | -13.39% | 33.19% |
| Expense/₹ of Op Revenue | ₹1.24 | ₹0.69 |
| Roce | -20.84% | 40.46% |
With its ‘investor first’ approach built around commission income primarily, Paytm Money has certainly done well to move into profitable territory, with strong operating margins. However, it might be too early to call it battle won, considering the intense competition, including Groww, Zerodha and the latest offering from HDFC Bank to take on the startups in the space.
Sometimes, in a category like finance, the simplest assurance of future success is a number as distant as GDP growth rate, and in that respect at least, it would appear that an expanding market offers enough potential for profitable growth for Paytm Money and its many competitors.
