Fintech startup PhonePe achieved a profit after tax of ₹197 crores for FY24, compared to a ₹738 crore loss the previous year, excluding ESOP costs.
The company’s standalone payments business reversed its performance, achieving an adjusted PAT of ₹710 crores for FY24, up from a ₹194 crore loss the previous year. PhonePe did not reveal the costs associated with its employee stock options (ESOPs).
PhonePe’s revenues surged by 74% to ₹5,064 crores, driven by its ability to cross-sell a diverse range of products, according to the company’s statement.
“Our financial strategy is built on three key pillars: predictable and sustainable revenue growth, diversification of revenue streams, and ongoing bottom-line improvements,” said Adarsh Nahata, PhonePe’s CFO. He attributed the company’s rapid scaling and focus on profitability to these factors.
The company, backed by Walmart, noted that automation and cost efficiencies played a crucial role in enhancing revenue and profit. Sameer Nigam, the founder and CEO of PhonePe, emphasized that disciplined financial management will continue to drive the progression toward profitability in their Payments business.
Additionally, PhonePe recently introduced a new feature, ‘credit line on UPI,’ which allows users to access credit from banks for payments through its platform at checkout. Furthermore, this enhancement provides a seamless option for users to utilize credit during their transactions.