DBT Bureau
Bengaluru, 26 August 2024
Fintech major PhonePe Group has turned profitable after years of reporting losses. The company on Monday said it has clocked an adjusted profit after tax at Rs 197 crore for the financial year 2024 (FY24) against a loss of Rs 738 crore in FY23. The adjusted PAT number had been arrived excluding ESOP costs.
ESOPs or employee stock options, used as a tool to reward or retain employees. PhonePe didn’t offer any detail of its total ESOPs costs.
The company’s standalone payments business also reported an adjusted PAT of Rs 710 crore for FY24 against a loss of Rs 194 crore a year earlier, PhonePe said in a press release.
It also reported an impressive growth in its revenue for the last fiscal year. PhonePe’s revenues rose 74% to Rs 5,064 crore in FY24 as compared to Rs 2,914 crore reported in FY23. It was driven by factors including its ability to cross-sell a diverse product portfolio, the release said.
“Our financial strategy is anchored on three key pillars- predictable and sustainable growth in revenue, diversification of revenue streams, and continuing improvements to the bottom line. These pillars have guided our strategic decisions, enabling us to scale rapidly, while maintaining a focus on profitability and our healthy financial position,” Adarsh Nahata, CFO of PhonePe said.
“We believe a focus on disciplined financial management will help us continue in the progression towards profitability of our Payments business which by itself is a unique feat in the Indian context. We also view that the optimization of investments and capital allocation, in conjunction with building a diversified revenue model, and remaining customer-focused, will provide a solid foundation for sustained future success,” Sameer Nigam, Founder and CEO of PhonePe said.
Walmart-backed PhonePe said automation-driven operations and other cost efficiencies helped improve revenue and profit during the year. “We believe a focus on disciplined financial management will help us continue in the progression towards profitability of our Payments business,” Nigam added.
In recent years, the company has diversified into lending, stock broking and local commerce through its ‘Pincode’ app.
