Digital payments giant PhonePe reported a significant revenue increase of Rs 5,064 crore for the fiscal year ending March 2024, marking a 74% growth from the Rs 2,914 crore earned in the previous year. The company also achieved profitability, excluding Employee Stock Ownership Plan (ESOP) costs, with an adjusted net profit of Rs 197 crore for FY24, a substantial improvement from the Rs 738 crore loss recorded in FY23.
The Walmart-backed firm’s financial success is largely attributed to the robust performance of its payments business, which saw an adjusted profit of Rs 710 crore, compared to a Rs 194 crore loss in the prior year. Founder and CEO Sameer Nigam emphasized the importance of disciplined financial management in driving the profitability of their payments division, a notable achievement in the Indian market.
In the first quarter of FY24, PhonePe processed 24 billion transactions across various payment instruments, with a total transaction value of Rs 31.8 lakh crore. The company continues to dominate the Indian Unified Payments Interface (UPI) market, holding around 48% of transaction volume.
Beyond payments, PhonePe has been diversifying its offerings, expanding into insurance, merchant lending, and wealth management. The company is also exploring opportunities to expand its retail payment operations into new regions, including Southeast Asia and the Gulf, as part of a broader strategy to grow its market presence.
These financial results come amid discussions about the potential enforcement of a government-proposed 30% market share cap in the UPI segment, which may not be implemented with just a few months remaining.