Digital payments provider PhonePe reported a 77 per cent increase in its income to ₹2,914 crore in FY23 on a consolidated basis. In FY22, it reported a revenue of ₹ 1,646 crore.
The growth is led primarily by its focus on market expansion and leadership in the digital payments market, especially in major revenue contributing use cases such as money transfers, mobile recharges and bill payments. “Our rapid top-line growth and investments in new opportunities are accompanied by our payments business moving towards positive EBITDA (before ESOP costs),” the company said.
Market share
As of March 2023, PhonePe claims to hold a market share of 50.54 per cent in the UPI Total Payments Value (TPV) market, further solidifying its position. Additionally, the growth in revenue was driven by the successful introduction and scaling of innovative products and ventures, including smart speakers, rent payments and insurance distribution. By August 31, 2023, the deployment of smart speakers had reached an impressive 4.1 million units.
Its EBITDA for the standalone PhonePe India Pvt Ltd entity (which houses our payments business) stood at a negative ₹ 1,755 crore in FY23 compared to a negative ₹1,612 crore in FY22. Meanwhile, on an adjusted basis (excluding ESOP expenses), it stood at ₹159 crore in FY23 compared to negative ₹455 crore in FY22.
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According to the company, substantial ESOPs were granted in FY23 towards corporate restructuring and as one-time rewards for setting up and incentivising new business.
Further, in FY23, the company completed three critical actions, including completing a full spinoff from Flipkart Group, moving its domicile to India from Singapore and concluding an equity fundraising of ₹ 7,021 crore from long-term investors such as General Atlantic, Walmart, Ribbit Capital, TVS Capital Funds and Tiger Global, pegging PhonePe at a $12 billion pre-money valuation.
“These actions enable us to invest in India for the long term and create a sustainable ecosystem and shareholder value in India. Going forward, our focus will remain on strengthening our leadership position in digital payments while growing the business sustainably and profitably. We believe the combination of our payments business along with the suite of new businesses will result in a diversified revenue portfolio with robust growth and a high level of profitability in the ensuing years,” said the company.
Published on October 18, 2023
