PhonePe turns profitable with adjusted PAT, revenue up 74% for FY24

Fintech major PhonePe Group on Monday reported an impressive turnaround, recording an adjusted profit after tax at Rs 197 crore for the financial year 2024 (FY24) against a loss of Rs 738 crore in FY23.

This is the first time the company has reported profit on consolidated numbers.

The Walmart-owned firm reported a 74 per cent jump in its revenue for FY24 at Rs 5,064, up from Rs 2,914 crore in FY23.

The company said that this achievement of top-line growth in conjunction with sustainable bottom-line improvement is a result of PhonePe’s 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. We also view that the optimization of investments and capital allocation, in conjunction with building a diversified revenue model, and remaining customer-focused, will provide a solid foundation for sustained future success,” said Sameer Nigam, Founder and CEO of PhonePe.

The standalone payments business recorded adjusted profit after tax (PAT) of Rs 710 crore for FY23-24 versus Rs 194 crore loss for FY22-23.

“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. These pillars have guided our strategic decisions, enabling us to scale rapidly, while maintaining a focus on profitability and our healthy financial position,” said Adarsh Nahata, CFO of PhonePe.

PhonePe is the largest player in the UPI ecosystem. The company also expanded into financial services like insurance, lending and wealth.

The group also has a consumer tech business called Pincode.