PhonePe reports Rs 2,914 Cr revenue in FY23

Digital payments platform PhonePe on Wednesday said it registered Rs 2,914 crore income on a consolidated basis in FY23. The numbers represent a 77% growth compared to FY22 when its revenue stood at Rs 1646 crore.

PhonePe has attributed market expansion and revenue-contributing products such as money transfers, mobile recharges and bill payments for remarkable growth in FY23. In the unified payments interface (UPI) total payments value (TPV), PhonePe claims to have a market share of 50.54% in March 2023.

PhonePe claimed that the sale of speakers also churned decent revenue but did not disclose any figure. Its total smart speaker deployment stood at 4.1 million as of 31st August 2023, the company said in a press release.

According to the company, its EBITDA for the payment business stood at negative Rs 1,755 crore in FY23 as compared to Rs 1,612 crore in FY22.

The company has also granted Substantial ESOPs in FY23 towards the corporate restructuring and as one-time rewards for setting up and incentivizing new business. While its EBITDA (excluding ESOP) stood at Rs 159 crore in FY23.

In the UPI ecosystem, PhonePe has maintained the lead position for the past three years. As per data sourced from NPCI, PhonePe did nearly 5 billion transactions via UPI in the past couple of months. Its direct competition Google Pay and Paytm are way behind in terms of volume and value.

Since hiving off from Flipkart in December 2022, PhonePe has raised a total of $850 million and expects to close another $150 million round soon. The fresh funds were raised at a pre-money valuation of $12 billion.

Its nearest competition Paytm grew 60.6% to Rs 7,990 crore in FY23 in contrast to Rs 4,974 crore in FY22. The firm managed to control its losses by 26% to Rs 1,776 crore in FY23. The SoftBank-backed firm also filed its quarterly results (Q1 FY24) during which it grew by only 0.3% to Rs 2,341.6 crore.