PhonePe’s Revenue Inches Closer To INR 3,000 Cr Mark In FY23

Fintech startup PhonePe recorded a revenue of INR 2,914 Cr in the financial year ended March 31, 2023, an increase of almost 77% from INR 1,646 Cr in FY22. 

The startup, in a statement, attributed the increase in revenue to growth in money transfers, mobile recharges and bill payments.The Walmart-owned company also said that the revenue growth was driven by the launch and scale-up of new products and businesses such as smart speakers, rent payments, and insurance distribution. 

However, the startup didn’t disclose its net loss for the financial year 2022-23 (FY23) in the release.

PhonePe said its smart speaker deployment stood at 4.1 Mn as of  August 31, 2023. Meanwhile, its market share in the total payments value (TPV) for UPI stood at 50.54% in the month of March 2023. PhonePe competes against the likes of Paytm, Google Pay, and CRED in UPI transactions. 

PhonePe claimed that the rise in total revenue helped its payments business report positive adjusted EBITDA (EBITDA before ESOP costs). 

EBITDA for the standalone PhonePe India Pvt Ltd entity, which houses the startup’s payments business, stood at INR -1,755 Cr in FY23 as against INR -1,612 Cr in FY22. However, adjusted EBITDA stood at INR 159 Cr in FY23 as compared to INR -455 Cr in FY22. 

Without disclosing the figures, PhonePe said it disbursed “substantial” ESOPs as a reward for corporate restructuring in FY23. 

In FY23, Phonepe raised the biggest equity fundraise in the country’s startup ecosystem. The startup bagged INR 7,021 Cr ($850 Mn) at a whopping valuation of $12 Bn – at a time when startups are struggling to raise capital or facing substantial markdown. The startup also moved its domicile from Singapore to India and completed its spin-off from the Flipkart Group. 

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