PhonePe Records 77% Jump In Revenue: FY23 Results


Fintech giant PhonePe has recorded a 77 per cent year-on-year increase in its consolidated revenue, reaching Rs 2,914 crore in FY23, up from Rs 1,646 crore in the previous fiscal year.

As of March 2023, PhonePe’s Unified Payments Interface (UPI) market share accounted for 50.54 per cent of total payments value. However, its payment business did report an operating loss of Rs 1,755 crore in FY23, compared to Rs 1,612 crore in FY22.

The startup achieved positive EBITDA figures on an adjusted basis, excluding ESOP costs. The adjusted earnings (EBITDA) amounted to Rs 159 crore in FY23, marking a significant turnaround from the operating loss of Rs 455 crore in FY22.

A valuation report by KPMG, filed by PhonePe, predicts an EBITDA profit of Rs 1,797 crore by 2025, with a margin of 19.7 per cent. The company’s management aims to achieve revenue of Rs 9,139 crore in 2025.

Despite these achievements, PhonePe’s rival, Paytm, also reported positive adjusted EBITDA for the third quarter of FY23, demonstrating a growing trend in the digital payments sector. Both companies, however, remain loss-making at a consolidated level.

PhonePe attributes its growth to diversified revenue streams from non-payment businesses and new products such as smart speakers, rent payments and insurance distribution. The company currently boasts a deployment of 4.1 million smart speakers as of August 2023.

PhonePe recently completed a full spin-off from the Flipkart Group, moved its domicile to India from Singapore, and raised Rs 7,021 crore at a pre-money valuation of USD 12 billion. This funding will support new businesses and revenue diversification, aiming for profitability in the coming years.

The fintech platform plans to scale up its new businesses and aims for an IPO in 2024-2025.

Founded in 2015, PhonePe now has over 490 million registered users and has digitised over 36 million offline merchants across various Indian regions, covering 99 per cent of the country’s pin codes.

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