PhonePe’s Revenue Crosses INR 5,000 Cr Mark In FY24, Claims Profitability Before ESOP Costs

Fintech major PhonePe claimed that it turned profitable before ESOP costs during the financial year ended March 31, 2024. The startup said it posted an adjusted profit after tax (PAT) of INR 197 Cr in the financial year 2023-24 (FY24) as against an adjusted loss after tax of INR 738 Cr in the previous fiscal year. 

It is pertinent to note that PhonePe posted a net loss of INR 2,795.3 Cr in FY23.

In a statement, the Walmart-owned company said that its revenue grew 74% to INR 5,064 Cr in FY24 from INR 2,914 Cr in FY23.

PhonePe attributed this growth to market leadership, platform reliability and cross-selling a diverse product portfolio.

“Our financial strategy is anchored on three key pillars: (1) predictable and sustainable growth in revenue, (2) diversification of revenue streams, and (3) continuing improvements to the bottom line. These pillars have guided our strategic decisions, enabling us to scale rapidly,” PhonePe’s CFO Adarsh Nahata said. 

PhonePe said that its standalone payments business recorded an adjusted PAT of INR 710 Cr in FY24 as against an adjusted loss of INR 194 Cr in FY23. 

“We believe a focus on disciplined financial management will help us continue in the progression towards profitability of our Payments business which by itself is a unique feat in the Indian context,” PhonePe founder and CEO Sameer Nigam said. 

However, PhonePe didn’t disclose its expenses for the year. 

The company claimed that its flagship UPI app surpassed 550 Mn registered users and 40 Mn merchants during the year. It processes over 270 Mn daily transactions with an annualised total payment value of over $1.5 Tn. 

In the month of July, PhonePe processed 6.98 Bn UPI transactions worth INR 10.28 Lakh Cr. It held a 48.3% market share in the UPI ecosystem, followed by Google Pay at 37% and Paytm at 7.82%.

After building a loyal customer base through its UPI offering, PhonePe has been launching new services over the past few years to cross sell to its customers and increase its revenue. Phonepe Group now offers financial services like insurance, lending, and stock broking app Share.Market.

Most recently, it launched a new ‘Credit Line on UPI’ feature, allowing consumers to link credit lines from their banks directly to UPI on the platform.

Besides its fintech offerings, the group also comprises hyperlocal ecommerce app Pincode and Indus App Store, which was launched in February this year.