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Simplifying... Inshort

PhonePe, India's leading payment app, has turned profitable with a revenue of ₹5,064 crore in FY24, a significant leap from its previous year's loss.
The company's profitability is largely due to its standalone payments business, which reported a profit of ₹710 crore.
Additionally, PhonePe's diversification into sectors like insurance and wealth management, and processing a whopping 24 billion transactions in Q1 FY24, have further solidified its financial resilience and market dominance.

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PhonePe's revenue soars by 74%

PhonePe turns profitable, clocks ₹5,064 crore revenue in FY24

By Dwaipayan Roy

Aug 26, 2024

04:19 pm

What's the story

PhonePe, a leading player in the digital payments sector, has reported a significant 74% increase in its revenue for the fiscal year ending March 2024. The company's revenue rose to ₹5,064 crore from ₹2,914 crore in the previous fiscal year. This substantial growth is attributed to cost efficiency measures, and product diversification strategies implemented by PhonePe. In addition to its revenue growth, PhonePe has also achieved a significant financial milestone by turning profitable.

Profitability

PhonePe achieves net profit of ₹197 crore

The firm reported an adjusted net profit of ₹197 crore for FY24, after excluding employee stock ownership plan (ESOP) costs. This is a substantial improvement from the loss of ₹738 crore it incurred in the previous fiscal year.

Business turnaround

Standalone payments business contributes to profitability

PhonePe's standalone payments business played a significant role in the company's journey to profitability. The segment reported an adjusted profit after tax (PAT) of ₹710 crore for FY24, marking a turnaround from a loss of ₹194 crore in FY23. This strong performance underscores the financial resilience of PhonePe's core business operations.

Diversification strategy

Expansion into insurance, wealth management

Over the past year, PhonePe has been expanding its operations into various sectors including insurance, hyperlocal e-commerce, and wealth management. Each of these businesses is housed under a separate subsidiary as part of the company's diversification strategy. This approach is aimed at driving operating leverage through automation and cost efficiencies.

Transaction volume

PhonePe processed 24 billion transactions in Q1 FY24

In the first quarter of FY24, PhonePe processed a staggering 24 billion transactions across all payment instruments. The total transaction value during this period amounted to ₹31.8 lakh crore. These figures further solidify PhonePe's position as India's biggest Unified Payments Interface (UPI) payment app, with an estimated market share of 48% based on transaction volume.