Fintech major PhonePe has clocked a profit after tax of ₹197 crore, excluding ESOP costs, in the financial year 2024, compared to a loss of ₹738 crore last year.
The company’s revenue rose by 74 per cent to ₹5,064 crore for FY23-24 from ₹2,914 crore.
The Bengaluru-based company’s standalone payments business also reported an adjusted PAT of ₹710 crore for FY24 from a loss of ₹194 crore a year earlier, PhonePe said in a statement.
“Our financial strategy is anchored to three key pillars: predictable and sustainable growth in revenue: diversification of revenue streams: and continuing improvements to the bottom line,” PhonePe’s Chief Financial Officer Adarsh Nahata said. He added that these factors have helped the company scale rapidly while maintaining a focus on profitability.
Walmart-backed PhonePe said driving operations by automation and other cost efficiencies helped improve revenue and profit during the year. “We believe a focus on disciplined financial management will help us continue in the progression towards profitability of our Payments business,” the company’s Founder and Chief Executive Officer Sameer Nigam said in the statement.
Expansion bid
The fintech major has recently launched a ‘credit line on UPI’ on its platform, where users can access the provision from banks to pay merchants through credit. This payment option can be availed of at the time of checkout through PhonePe’s Payment Gateway.
PhonePe has been doubling down its bet subsidiaries since the past year, fuelling expansion across insurance, wealth management, and hyperlocal e-commerce. Each business is housed under a different subsidiary.
The company has also forayed into the stock market through its Share.Market app, which allows users to trade and invest in stocks, mutual funds, and ETFs (exchange-traded funds).
PhonePe has over 550 million registered users and a digital payments acceptance network of 40+ million merchants. It processes over 270 million daily transactions with an annualised total payment value (TPV) of over $1.5 trillion.