PhonePe’s revenue from operations surged about 86% to INR 690 Cr in FY21
While the startup’s revenue from payments and allied services was INR 371.8 Cr in the last fiscal year, in FY21 it stood at INR 686 Cr
The startup’s employee benefit expenses grew 157% to INR 1,235 Cr in FY21
Flipkart-backed digital payments firm PhonePe’s losses marginally narrowed by 2.5% to INR 1,727.8 Cr in FY21, helped by a major jump in its operating revenue.
As seen in its latest filings with the Ministry of Corporate Affairs, the startup had incurred a total loss of INR 1,771.5 Cr in FY20.
PhonePe’s revenue from operations surged about 86% to INR 690 Cr in FY21. While the startup’s revenue from payments and allied services was INR 371.8 Cr in the last fiscal year, in FY21 it stood at INR 686 Cr.
PhonePe saw an improved bottom line despite its increased expenses. Its total expense stood at INR 2,456 Cr in FY21 versus INR 2,202.7 Cr reported a year earlier.
The startup’s employee benefit expenses grew 157% to INR 1,235 Cr in FY21. Its expense from depreciation, depletion and amortisation also increased to INR 133.5 Cr in the year versus INR 87 Cr in FY20.
However, PhonePe could bring down its other expenses including spending on payment processing charges and marketing to INR 1,085.5 Cr in FY21 from INR 1,634.5 Cr spent in the last fiscal year.
Founded in 2015, PhonePe was acquired by Flipkart in 2016. Later in 2018, it became part of Walmart after the US-based retailer acquired Flipkart Group.
As the real-time payment system, Unified Payments Interface (UPI) broke a record in May this year after it crossed the INR 10 Lakh Cr mark with nearly 6 Bn transactions in the month, PhonePe also registered record transactions worth INR 5.11 Lakh Cr. In May, PhonePe alone secured a 49% market share in the app-wise total volume of UPI transactions.
PhonePe also continued its acquisition spree in the last few months. In May, it acquired two wealth management startups, WealthDesk and OpenQ for an aggregate amount of $75 Mn.
Earlier in March, the startup acquired GigIndia for an undisclosed amount. GigIndia is a B2B marketplace for on-demand work completion for freelance micro-entrepreneurs.
On the other hand, PhonePe’s acquisition of Indus OS also saw a step ahead in April after the Singapore High Court dismissed appeals filed by a marketing tech platform Affle that challenged the acquisition.
Recently there were reports that PhonePe was planning for an IPO once it becomes profitable, which it expects to achieve in 2023. However, later its founder and CEO refuted the report in a Tweet saying “I had no idea my own company is filing an IPO.”
