PhonePe revenue zooms 77% in one year, but loss widens

Revenue rose to Rs 2,914 crore in FY23 compared from Rs 1,646 crore, while operating loss widened to Rs 1,755 crore from Rs 1,612 crore
PhonePe. (File Photo)
PhonePe. (File Photo)

PhonePe on Wednesday reported a 77% y-o-y growth in consolidated revenue at Rs 2,914 crore in FY23 compared to Rs 1,646 crore in the previous fiscal year. Operating loss for the standalone PhonePe India (which houses payments business) stood at Rs 1,755 crore in FY23, up from Rs 1,612 crore in FY22.

On revenues, the company said the growth was led primarily by its focus on market expansion and leadership in the digital payments market, especially in major revenue-contributing use cases like money transfers, mobile recharges and bill payments.

UPI Total Payments Value (TPV) market share stood at 50.54% in March 23. Revenue growth was also driven by the launch and scale-up of new products and businesses such as smart speakers, rent payments, and insurance distribution. As of August 31, 2023, smart speaker deployment stood at 4.1 million, PhonePe said.

In FY23, the company completed its full spinoff from Flipkart Group. Also, it moved the domicile to India from Singapore.  Apart from these, the company concluded an equity fundraising of Rs 7,021 crore from long-term investors such as General Atlantic, Walmart, Ribbit Capital, TVS Capital Funds and Tiger Global, pegging PhonePe at a $12 billion pre-money valuation.

"The fundraise equips us with the required capital to invest behind new businesses which in turn will simultaneously grow and diversify our revenue and profit pools. Going forward, our focus will remain on strengthening our leadership position in Digital Payments while growing the business sustainably and profitably," the company said on Wednesday.

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