Digital payments company PhonePe has reported a slight decline in its consolidated net loss from ₹2,795 crore in March 2023 to ₹1,996 crore March 2024, according to Tofler report.
The company further saw its revenue increased to ₹5,064 crore for FY 2023-24 as against ₹2,914 crore in the previous FY recording an increase of 74 per cent.
On a standalone basis, the revenue increased to ₹4,910 crore for FY 2023-24 as against ₹2,859 crore in the previous FY, an increase of 72 per cent. Furthermore, PhonePe's net loss on a standalone basis stood at ₹1,166 crore as compared to ₹2,107 crore in the previous financial year.
Fintech startup PhonePe achieved a post-tax profit of ₹197 crore in the financial year 2024, excluding the costs associated with employee stock options (ESOPs). This marks a significant turnaround from the ₹738 crore loss reported the previous year.
PhonePe’s standalone payments business recorded an adjusted profit after tax (PAT) of ₹710 crore for FY24, compared to a ₹194 crore loss in the prior year, according to a company statement released on Monday.
However, when ESOP costs are factored in, the company reported an overall loss. ESOPs, a common method to reward and retain employees, can impose substantial financial and tax burdens on both the company and its employees. PhonePe did not disclose the specific costs associated with its ESOPs.y
“Our financial strategy is anchored on three key pillars: (1) predictable and sustainable growth in revenue, (2) diversification of revenue streams, and (3) continuing improvements to the bottom line,” PhonePe’s chief financial officer Adarsh Nahata said.
In 2023, the company made its foray into the stock broking business last year with the launch of its Share.Market app, enabling users to trade and invest in stocks, mutual funds, and exchange-traded funds (ETFs). This move places it in competition with industry leaders like Groww and Zerodha.
Additionally, PhonePe operates a commerce division called Pincode, which caters to various categories both within and beyond the Open Network for Digital Commerce (ONDC) platform.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.