Walmart-owned PhonePe has recorded Rs 1,913 crore in revenue in the first nine months (January to September) of 2022, according to its valuation report accessed through a regulatory filing. It also seems to be on the way to narrowing its losses in FY23 as the firm’s earnings before interest and tax (EBIT) skid to Rs -410.4 crore in the same nine-month period.
PhonePe has made 2,721.1 crore transactions with a total payment value of Rs 45.3 trillion in the first nine months of the year, the filings showed.
Coming back to revenue, it made 99% of its total operating income through processing payment transactions. This segment brought Rs 1,913 crore to PhonePe’s coffers during the three quarters. At this rate, PhonePe is likely to surpass its FY22 numbers in FY23. During FY22, it managed to grow its scale by 2.4X to Rs 1,646 crore. However, the two data points can’t be compared directly.
On the expenditure side, the employee benefit cum payroll expenses were the largest cost center for the only fintech decacorn in the country. This cost formed 34.84% of its overall expense and stood at Rs 809.4 crore during the first nine months of CY22.
PhonePe has spent Rs 513 crore on marketing and promotion during the above duration while it incurred Rs 336.3 crore on payment processing.
The Bengaluru-based firm registered an EBIT (earning before interest and tax) of Rs -410.4 crore during the period whereas the figure for the same stood at Rs -2,061.4 crore during FY22.
PhonePe declined to comment on the story.
According to the valuation report, the company has projected a revenue of Rs 17,772 crore in the next five years with an EBITDA of Rs 7,720 crore.
The report further revealed that the company has a total of 48,663,259 shares on a fully diluted basis with a value of Rs 19,633 per share resulting in a total valuation of Rs 95,540 crore or $12 billion. The company recently announced a $350 million funding round led by General Atlantic at a pre-money valuation of $12 billion. According to PhonePe, the investment marks the first tranche of $1 billion that commenced in January this year.
In December, PhonePe became a fully India domiciled company after its complete hive-off from Flipkart. Phonepe also disclosed that Investors of the company had to pay Rs 8,000 crore in taxes to the Indian government after it shifted its domicile from Singapore to India.
To tap international customers, the company has launched a cross border payments service where it will allow users to pay foreign merchants using UPI. As of now, the feature is available in UAE, Singapore, Mauritius, Nepal, and Bhutan.
PhonePe’s closest rival Paytm recently announced results for the third quarter of the current financial year (Q3 FY23). As per the company’s regulatory filings, its revenue surged 41% to Rs 2,062 crore in the December quarter on a year-on-year basis. The firm’s net loss also narrowed to Rs 392 crore during the period. Overall, Paytm has earned Rs 5,655 crore in revenue in the three-quarters of FY23 (April to December 2022).