PhonePe cuts losses as revenue tops ₹7,000 crore in FY25

Digital payments company PhonePe reported revenue in excess of ₹7,000 crore and a reduction in losses for FY25, according to its filings with the ministry of corporate affairs (MCA).

On a consolidated basis, revenue from operations rose 41% to ₹7,148.6 crore in FY25 from ₹5,064.1 crore in FY24. Total income, including other income, came in at ₹7,631.4 crore, up from ₹5,722 crore in FY24.

Expenses increased to ₹9,394.1 crore in FY25, a 21% increase from ₹7,754.3 crore in FY24. While costs continued to grow, the pace was lower than the topline expansion. As a result, consolidated loss after tax narrowed to ₹1,727.4 crore in FY25 from ₹1,996.2 crore in the previous year. Other comprehensive income for the year was ₹72.6 crore, reversing a loss of ₹16.3 crore a year ago.

PhonePe, founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, is a subsidiary of Walmart Inc. The company has expanded from its core offering, payments, into insurance, lending, wealth management, and consumer technology offerings such as Pincode and the Indus Appstore. It has raised close to $1 billion so far from investors such as General Atlantic and Tiger Global, and was valued at $12 billion in its most recent funding round in 2023.

IPO plans

The company has been preparing for a public listing. In February, PhonePe appointed JP Morgan, Citi India, Morgan Stanley, and Kotak Mahindra Capital as merchant bankers to manage its proposed initial public offering.

In April, PhonePe transitioned from a private firm to a public company in preparation for its IPO. It said at the time, “The company is commencing preparatory steps in connection with its potential IPO and plans to list on Indian exchanges. This marks a significant milestone for the company, which will celebrate its 10-year anniversary this year, and has grown to serve hundreds of millions of customers with innovative financial services and technology solutions."

In 2022 the company shifted its domicile from Singapore to India, becoming the first Indian company to complete such a move. The restructuring involved a tax payment of about ₹8,000 crore to the Indian government.