Slide 1: Paytm's Business Model
Paytm’s Business Model Vijay Shekhar Sharma Founder & CEO, Paytm
Slide 2: Disclaimer
Disclaimer By attending the presentation or by reading the presentation on the opinions and estimates of management at the date the correctness of any information or opinions contained herein and slides you agree to be bound as follows: statements are made and are subject to a variety of risks and a
Slide 3: We Acquire Customers for Payments and Distribute & Collect Credit
We Acquire Customers for Payments and Distribute & Collect Credit Average Monthly Transacting Users 39% YoY 79.7 mn 74.8 mn 70.9 mn 64.4 mn 57.4 mn Loan Distribution & Collection Business + Brand Sep-21 Dec-21 Ma r-22 Jun-22 Sep-22 • Paytm Postpaid + Distribution + Insights • Personal Loan Subscript
Slide 4: Payment Business has two key margin drivers
Payment Business has two key margin drivers GMV Payment Processing 63% YoY $38.9 Bn 1. We make net payment margin of 7 to 9 bps of GMV on processing $36.1 Bn $31.7 Bn 2. Of which UPI gives us 3 to 4 bps and other instruments give us 15 to $30.6 Bn 18 bps $23.9 Bn 3. Since UPI is growing faster than
Slide 5: Small credit is best served and collected digitally
Small credit is best served and collected digitally. Our payments customer base offers a large TAM for such loans Loans disbursed Sourcing 1. We help various lenders disburse small ticket personal loans and 482% YoY $894 Mn merchant loans $679 Mn 2. Postpaid drives credit volumes with small loan amo
Slide 6: We provide a fully digital loan disbursement platform to top NBFCs and Banks
We provide a fully digital loan disbursement platform to top NBFCs and Banks Postpaid Loans Personal Loans Merchant Loans • Accepted at 15 Mn merchants; total base of • Cross sell opportunities continue with over • Device merchants accounted for more than over 6 Mn signed up users 40% of loans to ex
Slide 7: We also monetize Paytm app traffic by providing marketing services to other businesses
We also monetize Paytm app traffic by providing marketing services to other businesses Co-Branded Credit Card 1. Co-branded Credit Cards give us up front distribution revenue and lifetime usage fee 2. We have ~ 300,000 cumulative activated cards as of Sep 2022 and retail average spend per active car
Slide 8: Key Costs
Key Costs Cost of building and expanding platform (in $ Mn) Sep-21 Jun-22 Sep-22 1. Being a platform business, we have two key costs Cost of building platform 34 48 49 Employees (excluding sales) a) Cost of building platform (people): $49 Mn in Q2 FY 2023 (expect 10-15% YoY increase on current base,
Slide 9: Growth Drivers in Our Business
Growth Drivers in Our Business 1. We believe we are in early days of Payments in India UPI has ~250 million signed up customers, and there are only total ~10 million devices in market 2. We believe overall subscriptions for payment and other services will be a large market. India could have potentia
Slide 10: Expected ESOP charges based on currently issued ESOPS
Expected ESOP charges based on currently issued ESOPS Total ESOP Cost As of Sep 2022 In mn Q1 Q2 Q3 Q4 ($ Mn) FY 2023 -- -- 46 45 Basic shares outstanding 648.9 FY 2024 44 44 42 42 ESOPs vested and unexercised 3.5 FY 2025 40 33 28 22 ESOPs granted and unvested 33.1 FY 2026 18 18 9 9 FY 2027 8 8 1 1
Slide 11: Thank you
Thank you Vijay Shekhar Sharma Founder & CEO, Paytm