Digital payments and financial services firm Paytm disbursed 1.4 million loans, 53 times higher year-on-year, during January-March 2021, according to the company's draft IPO document.
The company had disbursed 26,000 loans in the same period a year ago.
According to the company's draft paper, Paytm disbursed 1.4 million loans in the fourth quarter of financial year 2020-21, almost 53 times higher than the number of loans (26,000) disbursed during the same period the previous year.
Last week, Paytm filed a draft paper with the Securities and Exchange Board of India (Sebi) for a Rs 16,600-crore initial public offering.
In the third quarter of 2019-20, the company disbursed 13,000 loans. In the fourth quarter of FY20, it disbursed 26,000 loans, 23,000 in the first quarter of FY21, and then saw a jump to 3,49,000 in the second quarter FY21, 8,81,000 in the third quarter FY21 and closed the fourth quarter FY21 with 1.38 million loans, according to the draft paper.
According to experts, the lending business of Paytm is expected to be one of the key growth drivers.
A report by Bernstein analysis said it expects Paytm's revenue base to double by FY23 to USD 1 billion, with non-payments revenue contributing 33 per cent, led by credit tech.
Paytm provides that postpaid service has a credit limit of up to Rs 60,000 for a maximum of 30 days, offered in partnership with two non-banking financial companies in India with an instant credit limit for various payments to Paytm app users.
Recently, the company also launched an extension of its 'buy now, pay later' product with Paytm Postpaid Mini, which enables loans starting from Rs 250 onwards for users.