Fintech giant Paytm has stated that it is pausing its small personal loans business including the Postpaid portfolio, due to a decline in asset quality across industry.

Paytm Postpaid was the company's buy-now-pay-later product, which had been transitioned to personal loans in December 2023.

The company has deferred the resumption of this vertical of its loan distribution businesses indefinitely, saying that it will not resume the business until "the credit cycle plays out."

The company attributed the wider losses to poor performance of its loan distribution services. It marked a decline in all three of its loan verticals in the quarter.
 Paytm Postpaid was the company's buy-now- pay-later product, which had been transitioned to personal loans in December 2023.

In its financial disclosures for the quarter ending on March 31, 2024 (Q4 FY24), fintech major Paytm reported an INR 304 Cr revenue from its financial service arm, marking a 36% year-on-year (YoY) decline from Q4 FY23's INR 475 Cr and a steeper 50% sequential decline from last quarter's INR 607 Cr.

Interestingly, its personal loans distribution declined only 1% YoY to INR 3,408 Cr. However,

The company has deferred the resumption of this vertical of its loan distribution businesses indefinitely, saying that it will not resume the business until "the credit cycle plays out."

Overall, the fintech major's losses widened 3X on a YoY basis to INR 550.5 Cr in Q4 FY24 from INR 167.5 Cr reported in the year-ago period. Its revenue from operations also decreased by 2.9% YoY to INR 2,267.10 Cr, compared to INR 2,334 Cr in the same period last year.

The company attributed the wider losses to poor performance of its loan distribution services. It marked a decline in all three of its loan verticals in the quarter.