MUMBAI: PhonePe has turned profitable excluding costs related to employee stock options (Esops) in FY24. PAT excluding Esop costs stood at Rs 197 crore during the year, the company said in a statement on Monday. The Walmart-backed fintech had posted losses of Rs 738 crore in FY23. Revenues surged to Rs 5,064 crore in FY24 from Rs 2,914 crore in FY23, translating into a year-on-year growth of 74%.
The standalone payments business recorded an adjusted (without Esops costs) PAT of Rs 710 crore in FY24 against losses of Rs 194 crore in FY23, the firm claimed. “…the achievement of topline growth in conjunction with sustainable bottomline improvement is a result of PhonePe’s focus on driving operating leverage through automation and cost efficiencies,” the company said.
Valued at $12 billion, PhonePe is aiming to go public in the coming years. The company which leads the unified payments interface (UPI) market with close to 50% share, processing the largest number of UPI transactions among apps, has been expanding its footprint beyond payments in an attempt to diversify its revenue streams. PhonePe which has built businesses in segments like insurance and merchant lending also ventured into the stock broking space last year with its own app Share.Market.
“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. We also view that the optimisation of investments and capital allocation, in conjunction with building a diversified revenue model, and remaining customer-focused, will provide a solid foundation for sustained future success,” said founder & CEO Sameer Nigam.
PhonePe shifted its domicile to India from Singapore in 2022 and completed separation from Flipkart.