Google Pay India's Revenue Climbs 34% To INR 1.5K Cr

SUMMARY

Google Pay’s India financials indicated that the company’s profit for FY20 stood at INR 33 Cr, a 6.5x growth from the last fiscal year’s profit of INR 5.1 Cr

Google India’s revenues have grown 34.8% to about INR 5,593.8 Cr in 2019-20 over the previous financial year, as per regulatory documents

About 80% of Google Pay India’s total revenue, amounting to INR 1,173.4 Cr was in the form of reimbursements received from the holding entity Google Asia Pacific recorded as revenues

Google Pay’s India financials indicated that the company’s profit for the fiscal year ending March 31, 2020 (FY20) stood at INR 33 Cr, a 6.5x growth from the last fiscal year’s profit of INR 5.1 Cr. The company’s EBITDA margin also grew from 3.49% in FY19 to 5.02% this year.

Last month, Inc42 reported that Google India’s revenues have grown 34.8% to about INR 5,593.8 Cr in 2019-20 over the previous financial year, as per regulatory documents. Further, the net profit was higher by about 23.9% at INR 586.2 Cr in FY20 as compared to INR 472.8 Cr in the preceding fiscal.

It is worth noting that Google Pay has the second largest market share at around 41%, for digital payments made through the National Payments Corporation of India (NPCI)-operated Unified Payments Interface (UPI) network.

Google Pay India’s FY20 financials highlight that the payments application’s revenues increased from INR 1,119 Cr in FY19 to INR 1,501.7 Cr in FY20, an increase of 34.2%. However, about 80% of the total revenue, amounting to INR 1,173.4 Cr was in the form of reimbursements received from the holding entity Google Asia Pacific recorded as revenues.

According to an Entrackr report, 77.2% of the total income was reimbursement for rewards given to users on its platform which amounted to INR 1,159.7 Cr during FY20. Another INR 265.9 Cr were collected from the Singapore based parent for the business support services provided during the fiscal ended in March 2020.

Interestingly, direct revenue from customers stood at INR 72.07 Cr, just 4.8% of Google Pay India’s total revenue for FY20.

An Inc42 analysis from July had pointed out that the revenue model of purely UPI-based payments services is not sustainable in the long run, because of zero MDR (merchant discount rate).