PhonePe reports 73% revenue surge to Rs 5,064 crore in FY24, turns adjusted PAT profitable

Sameer Nigam, founder and CEO, PhonePe

Fintech giant PhonePe has reported a significant 73 percent increase in revenue, reaching Rs 5,064 crore for FY24, on the back of cost efficiency and product diversification.

The firm had clocked Rs 2,914 crore revenue in the previous fiscal.

PhonePe Group has also turned its Adjusted Profit After Tax (PAT) positive, recording Rs 197 crore, a stark improvement from the Rs 738 crore loss reported last year.

The performance comes on the back of robust results from PhonePe's standalone Payments business, which posted an Adjusted PAT of Rs 710 crore, a turnaround from a Rs 194 crore loss in FY23.

The company attributed the growth to a strategic focus on driving operating leverage through automation and cost efficiencies.

“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. Optimization of investments and capital allocation, along with building a diversified revenue model and remaining customer-focused, will provide a solid foundation for sustained future success," said founder and CEO Sameer Nigam.

The diversification bet 

PhonePe has been doubling down its bet subsidiaries since the past year, fueling expansion across insurance, wealth management, and hyperlocal e-commerce. Each business is housed under a different subsidiary.

In a recent interview at the Moneycontrol Startup Conclave on August 9 in Bengaluru, Nigam had shared on company being at the brink of achieving near profitability at the consolidated level for FY24.

Nigam explained that each business within the PhonePe Group, including e-commerce (Pincode), stock broking (Share Market), merchant and consumer loans, soundboxes, advertisement etc.  besides standalone payments,  has its own growth trajectory and needs for branding, marketing, and cashbacks, except for the lending business, which starts generating cash from the beginning.

He highlighted that the merchant business and payment gateway were also contributing to profitability, supported by the deployment of around seven million merchant devices.

“There are a lot of value-added services, including point of sale (PoS) machines, sound boxes, advertisements, and merchant loans, where we are able to charge and monetise,” Nigam had said, indicating a diversified approach to revenue generation and profitability.

Adarsh Nahata, CFO of PhonePe added saying, "Our financial strategy is anchored on three key pillars: predictable and sustainable growth in revenue, diversification of revenue streams, and continuing improvements to the bottom line."