PhonePe FY25: Loss Narrows 13.5% To INR 1,727 Cr, Revenue Crosses INR 7,000 Cr Mark

SUMMARY

PhonePe’s revenue crossed the INR 7,000 Cr mark in FY25, as its operating revenue zoomed 40.5% to INR 7,114.8 Cr from INR 5,064.1 Cr in the previous year

The Walmart-owned company managed to narrow its net loss by 13.5% to INR 1,727.4 Cr in FY25 from INR 1,996.1 Cr in FY24

Total expenditure increased 21.2% to INR 9,394 Cr from INR 7,754.2 Cr in FY24

IPO-bound fintech major PhonePe’s revenue crossed the INR 7,000 Cr mark in FY25, as its operating revenue zoomed 40.5% to INR 7,114.8 Cr from INR 5,064.1 Cr in the previous year.

On the back of this increase in revenue and improvement in margins, the Walmart-owned company managed to narrow its net loss by 13.5% to INR 1,727.4 Cr in FY25 from INR 1,996.1 Cr in FY24.

Payments continued to be the biggest revenue source for PhonePe. It earned INR 6,299.7 Cr from payments services in FY25, up 31.5% from INR 4,788.5 Cr in the previous year.

Revenue from insurance and lending services saw the biggest increase, soaring 207.7% to INR 557.6 Cr during the year under review from INR 181 Cr in FY24. It earned the remaining revenue of INR 57.2 Cr from other services.

Total expenditure increased 21.2% to INR 9,394 Cr from INR 7,754.2 Cr in FY24.

The fintech startup reported an EBITDA loss of INR 413.6 Cr in FY25, down 54% from INR 903.1 Cr in FY24. EBITDA margin improved to -6% from -18% in FY24.

Founded in 2012 as a digital payments platform, PhonePe converted into a public limited firm in May 2025. PhonePe has expanded its offerings over the years, and runs a wide portfolio of businesses including payments, insurance broking, wealth management, stock broking, hyperlocal commerce through Pincode, and app distribution via the Indus Appstore.

Last week, it also received final approval from the Reserve Bank of India to operate as a payment aggregator, more than two years after it secured in-principle clearance. The licence will allow PhonePe to expand its presence among online merchants, with a focus on small and medium businesses.

In August 2025, the company processed over 915 Cr UPI transactions worth nearly INR 12 Lakh Cr. Its market share stood at 46.5%.

PhonePe is currently preparing for its public listing and is expected to confidentially file the draft IPO papers with SEBI later this month, aiming to raise $1.2 Bn to $1.5 Bn (about INR 10,000 Cr to INR 13,000 Cr) at a valuation of $7 Bn to $8 Bn.

The IPO is likely to be a mix of fresh issue and offer for sale, with Walmart expected to hold on to its majority stake. Investors such as Tiger Global and General Atlantic may look at partial exits.

Breaking Down PhonePe’s Expenses

Here’s a breakdown of PhonePe’s expenditure during the year under review:

Employee Benefit Expenses: Employee costs continued to be the largest expense for the startup, rising 13.7% to INR 4,096.7 Cr from INR 3,603.9 Cr in FY24.

Advertising & Promotional Expenses: PhonePe cut its advertising and promotion spending during the fiscal under review. It spent INR 541.6 Cr under the head in FY25, down 21.6% from INR 691 Cr in the previous year.

Customer Support & Subcontract Expenses: The spending under this head increased 67% to INR 586.6 Cr from INR 351.1 Cr in FY24.

IT Infrastructure Expenses: The startup’s IT expenses for the year under review increased 27.4% to INR 487.7 Cr from INR 382.8 Cr in the previous year.