PhonePe is an online payment startup that provides credit-link wallet solutions for businesses and consumers The startup showed a 73.8 percent increase in its operating revenue to Rs 5,064 crore in FY24. The company saw a huge decrease in its loss by 28.6 percent with a loss of Rs 1,996 crore in the same duration. The company offers UPI-based options for online shopping, bill payments, money transfers, and other options. The digital platform also allows its users to check bank balances online.
Entrackr mentioned in its report that the firm earns its income from payment services, interest on income, and commissions. The company also earns revenue from deposits and investments. This increased the total revenue to Rs 5,725 crore in this financial year. The online platform also allows users to create QR codes for payments and transactions.
The payment services accounted for more than half of the total operating revenue in FY24. The company has raised over 1.01 billion USD across multiple funding rounds since its inception, including 658 million USD raised during its series D funding round led by Tiger Global Management, Ribbit Capital, and other investors.
The company claims to provide a platform for merchant and business payments online. The startup data intelligence platform, tracxn mentioned that General Atlantic is the largest institutional investor of the firm. PhonePe offers online payment services with the best customer experience. This fintech startup enables companies to manage and record their payment record efficiently.
The legal, license, marketing, information technology, and other expenses increased the total expenditure by 74.8 percent to Rs 1,166 crore in FY24. However, 46.45 percent of the total expenses go to employee benefits. This fintech company has investors including Tecent, General Atlantic, and Walmart.
The fintech startup is focused on improving its business model while offering more innovative payment solutions, positioning it well in the global market. The company plans to minimize losses by reducing operating expenses and employee benefits.
The employee benefit increased by 16.4 percent to Rs 3,603 crore in FY24. The EBITDA margin also improved and stood at -14.74% while the ROCE was reported to be around -18.25 percent in the same period. The total expenditure of the firm increased by 31.3 percent to Rs 7,756 crore in the same duration. The company faces competition with other companies in the same segment such as Paytm.
Conclusion :
PhonePe announced a 73.8 percent increase in its revenue from operations to Rs 5,064 crore in FY24. This fintech startup offers an online payment platform offering financial services. This online platform offers credit-based wallet solutions to consumers and businesses.
These payment services and interest on deposits are the company’s primary sources of revenue. The startup reported around a 28.6 percent decrease in its loss to Rs 1,996 crore in FY24. The total expenditure of the firm increased by 31 percent and crossed Rs 7,756 crore in the same duration. PhonePe competes with other online payment platforms platforms including Paytm and more.
Disclaimer – We have collected this information from various trustworthy sources on the Internet, and the facts have been checked manually and verified by our In House team.
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