One 97 Communications

“We obviously do expect to grow GMV faster than the market, both on the consumer and merchant side.”

“Oh yeah, one year, which is three months already passed. So nine months plus three equals one year.”

“we obviously, when we're putting out a number, we don't put the high end of our number; we put, you know, we sort of haircut it for various scenarios.”

“What we have said is there's a huge amount of tailwinds in the businesses overall, including in the merchant lending business, that we don't think that we're looking at EBITDA going down next quarter. We do think EBITDA will continue to go up next quarter despite this drag.”

“Jayant, EBITDA margin is not going down.”

“That number is a little bit higher than before, but we are focusing a huge amount on engagement and retention of high-quality and high-potential merchants because the payback periods are working so well”

“So we switched our business model completely towards distribution without requiring any upside off or any DLG to be given in consumer business.”

“The merchant loan business continues to do very well, including some TAM expansion opportunities that we have talked about, both on the slightly smaller ticket size, as well as the larger ticket size”

“So it took time last time. It will take less time, this time. We want to be very sure of the quality of customers, quality of credit book, and so on. And incidentally, it is an EBITDA positive business by itself.”

“So the threshold is not based on GMV, but rather based on aging and GMV.”

“So this is our purpose, and we build a financial system for the world's small businesses. Start from India, take them to the rest of the world.”

“And there's been a little bit of headwind overall in wealth, including the gold business. So these are much, much smaller businesses of ours, but because you asked, and I just want to be complete. But in 85-90% of our revenue, we are seeing significant tailwinds rather than any meaningful headwinds.”

“This time, obviously, we have a late Diwali, so the festive season is almost entirely in Q3.”

“And we are seeing very healthy tailwinds in lending business. Personal loans, as we come out of the credit cycle, which was our expectation four or five quarters ago when we were in the middle of the credit cycle”

“And on payments, we see GMV growth, market share growth, as well as better pricing.”

“So Sachin, the answer is that this is a bottom-line accretive number, and it is an upside. And the plan for consumer acquisition does not change and deter because of this.”

“So I'm going to say that the bps that we've quoted does not factor in any potential additional revenue of any platform side fees that could have been added.”

“So, as board guided, we have taken straight charge in the same quarter.”

“If a lender has a preference, we let them have the DLG, and it does back-end some of our profitability.”

“Yes, but it will come only when you have transactions of more than 2000 rupees.”

“So we're quite comfortable with running a large book within which a large percentage might be DLG-based.”

“Free cash flow also, where there is this component of capex, which we'll give more guidance on next quarter. But yeah, broadly free cash flow will work in EBITDA terms, right?”

“So I believe, Sachin, subscription plus transaction fee, one of the two or both will be applicable.”

“We are working with Meta and Google, actually rather Meta, where we are charging a monthly platform fee. And then we get some percentage of spend also.”

“For large businesses, we have something more brewing up. Hopefully we will announce it after some time.”

“So when we went to the board, we took an enabling resolution that we can put up to 500 crores in the subsidiary.”

“To the extent that it is being infused in the Singapore subsidiary of PCTL, Paytm Cloud Technologies Limited, that is likely to be used for some seed investments in international markets”

“So that was largely in this quarter. There's a little bit of that in the next quarter. So there is that sort of one-time exercise.”

“But overall market volumes haven't been that great. So that hasn't quite scaled up as much as we would like to. Travel has been a little bit sort of on and off. So there are headwinds in the travel industry as well.”

“Within that, there was one quite large customer where we had a long-term contract that has expired. We're discussing whether we would do it on a different pricing. If we're not, we're happy to let that customer go.”

“But our sense is it may also have to do with certain RBI guidelines with respect to, they can offset that against credit losses and so on.”

“but we have taken the opportunity to just kind of flag it ahead of time so that there are no surprises at the end of the quarter.”

“I think we'll only find out in quarter two, quarter three after implementation.”

“And I'm very happy to say this, that we are going to go all in on market share. And we call it a primary KPI for my team.”

“Flip of a switch on day one.”

“Yeah, so yes, we have now seen two consistent quarters of 28% growth. And while we stick by the reported numbers, if you exclude PIDF from the previous year's same quarters, this number is in the 30s.”

“We're ready. The industry is ready.”

“So, Vijit, as we have said, the MDR on UPI is an upside to our business model. It is not fundamental to our business model.”