PhonePe records revenue of Rs 2,914 crore in FY23, marks 77% jump

The Walmart-owned fintech firm said this growth is led primarily by its focus on market expansion and leadership in the digital payments market.

PhonePe recorded consolidated revenue of Rs 2,914 crore in FY23, marking a 77 per cent year-on-year growth over its FY22 revenue of Rs 1,646 crore. The Walmart-owned fintech firm attributed this surge to its market expansion strategies and leadership in the digital payments sector. Significant contributors to revenue include money transfers, mobile recharges, and bill payments.

"FY23 has been a pivotal year for PhonePe," the company stated. "We not only continued our rapid top-line growth but also diversified our revenue streams from non-payment sectors, moved towards a positive Ebitda before ESOP costs, and executed key strategic actions for long-term growth."

The firm also noted a significant milestone in its payments business, which is now moving towards positive Ebitda before ESOP costs. The standalone entity, PhonePe India Pvt Ltd, reported an Ebitda of Rs -1,755 crore in FY23, compared to Rs -1,612 crore in FY22. On an adjusted basis, excluding ESOP expenses, the Ebitda stood at Rs 159 crore in FY23, up from Rs -455 crore in FY22. The company said that substantial ESOPs were granted in FY23 as part of corporate restructuring and as one-time rewards for new business initiatives.

As of March 2023, the company's UPI Total Payments Value (TPV) market share was 50.54 per cent. Revenue growth was further fuelled by the launch and scale-up of new products such as smart speakers, rent payments, and insurance distribution. For instance, the deployment of smart speakers reached 4.1 million units as of 31 August 2023.

In FY23, PhonePe achieved three critical milestones that have laid the groundwork for its future growth. It completed a full spinoff from the Flipkart Group and relocated its domicile to India from Singapore. Additionally, the firm secured an equity fundraising of Rs 7,021 crore from long-term investors like General Atlantic, Walmart, Ribbit Capital, TVS Capital Funds, and Tiger Global, valuing PhonePe at a pre-money valuation of $12 billion.

"These actions enable us to make long-term investments in India, create a sustainable ecosystem and build shareholder value," the company said. It added that the fresh capital would be invested in new business ventures to diversify its revenue and profit pools.

Looking ahead, PhonePe stated its focus would continue to be on strengthening its leadership in the digital payments sector while expanding its business sustainably and profitably. "We are at a unique juncture where multiple new businesses are ready to be scaled up with adequate investment capital. We believe this combination of a sustainable and profitable payments business, along with a suite of new ventures, will result in a diversified revenue portfolio with robust growth and group-level profitability in the coming years," the company concluded.