Paytm revenue increased by 42 percent, a rapid growth in the company’s loan distribution business.

Revenue at One97 Communications, the company of Paytm, which provides payment services, rose 42 per cent to around Rs 2062 crore in the latest quarter. This is an increase of about eight percent on a quarterly basis. The company says that one of the main reasons behind this is the increase in the number of consumers and merchants taking up subscription services. Apart from this, the company’s loan distribution business is also growing rapidly.

The share of financial services revenue, including loan distribution, in the company’s total revenue has risen to about 22 percent. Vijay Shekhar Sharma, Founder and CEO of Paytm, said, “This is due to the hard work of our team. The team was asked to drive growth with quality revenue that drives profitability. It has been achieved.”

Analysts expect the company to post positive Adjusted EBITDA in March. One97 Communications said it will maintain cost discipline. The company plans to invest in areas with growth potential. These include marketing to increase the number of users. The number of consumers using the Paytm app is increasing. It was around Rs 8.5 crore in the December quarter. There has been an increase of about 32 percent on a yearly basis. The gross value of merchandise processed through Paytm’s platform was around Rs 3.46 lakh crore in the quarter ending in December, up 38 percent year-on-year.

Last year, the Compliance Directorate (ED) requested information from Paytm about the investigation that was being carried out against some merchants. ED had conducted searches at some One 97 Communications facilities. In this regard, the company spokesperson had said that no new information was investigated in this ED search. ED has sought information on certain merchants from various payment service providers. The spokesman had said: “We have provided the necessary information.” Paytm had said that ED has not ordered any merchants linked to it or its group entities to be blocked. China’s Alibaba Group has a stake in One 97 Communication.