The number of loans disbursed through the company's platform zoomed 253% year on year to Rs 12,544 crore ($1,528 million) in the quarter.

Paytm said that its loan distribution business (in partnership with top lenders) continued to witness an accelerated growth with disbursements through its platform for the quarter.

"Our payments consumer and merchant base offers a large addressable market, thereby providing a long runway for growth. We continue to work with our partners to remain focused on the quality of the book," the company said.

Number of merchants paying subscription for payment devices has reached 6.8 million, increase in 1.0 million in the quarter. Merchant payment volumes (GMV) for the quarter stood at Rs 3.62 lakh crore ($44 billion), year on year growth of 40%. The company said that it focus over the past few quarters continues to be on payment volumes that generate profitability for the firm, either through net payments margin or from direct upsell potential.

The Paytm Super App continues to see growing consumer engagement with average monthly transacting users for the quarter at 90 million, registering growth of 27% year on year.

"We continue to strengthen our leadership in offline payments, with 6.8 million merchants now paying subscription for payment devices, an increase of 1.0 million in the quarter ended March 2023. With our subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution," the company stated in exchange filing.

One 97 Communications is the digital financial services firm which operates under the Paytm brand. Paytm is India's payment super app offering consumers and merchants comprehensive payment services.

The company reported consolidated net loss of Rs 392 crore in Q3 FY23 as compared with net loss of Rs 778.40 crore in Q3 FY22. Net sales jumped 41.6% year on year to Rs 2062.20 crore in Q3 FY23. In Q3 FY23, EBITDA before ESOP cost was at 31 crore as compared with negative Rs 393 crore in Q3 FY 2022 and negative Rs 166 crore reported in Q2 FY 2023. EBITDA before ESOP cost margin improved to 2% of revenues in Q3 FY23 from negative 27% of revenues in Q3 FY22 and negative 9% of revenues in Q2 FY23.