Paytm shares jumped over 6% on Monday, hitting the highest level in almost six months, after parent company One 97 Communications saw an 89% surge in revenue for the quarter, a Reuters report said.
Paytm reportedly saw a higher number of monthly users, additional payment devices and more disbursal of loans which lifted the company revenue to $211.16 million (16.8 billion rupees), or an increase from 8.91 billion rupees last year.
The investors didn’t seem to respond to the company’s loss of 6.44 billion rupees posted in its quarterly update.
Paytm, a digital payments firm, competes with Google and Walmart’s PhonePe for the digital payment market in India. The company might achieve operational profitability by September 2023.
Paytm has also recently said it thinks India’s central bank will let it take new customers in the next few months after an audit, PYMNTS wrote.
Read more: Paytm Expects India’s Central Bank to Allow It to Take on New Customers Within a Few Months
The audit came down in March this year, focusing on the company’s IT systems.
The audit focused on “material” supervisory concerns that the bank hadn’t seen.
The rule about Paytm not taking on new customers was also born because of that ruling. Paytm said it was working on the issue.
“The process is underway and we think it should take three to five months from where we are right now,” Madhur Deora, Paytm’s group chief financial officer, told Reuters.
The report noted that Paytm had denied a report that its servers had been sharing information with Chinese entities, which owned indirect stakes.
Furthermore, Paytm CEO Vijay Shekhar Sharma has said, in response to the controversy, that investors in the company don’t have access to consumer data.
Read more: Paytm CEO: Investors Don’t Have Access to User Data
This was a way to try and assuage concerns over reports of user investors being leaked to the Chinese firms.
Sharma said no investor had access to the company’s customer database. He said the country’s central bank also hadn’t raised concerns over data storage or access.
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