PhonePe revenue rises 85% in FY21 to Rs 690 cr, narrows losses
Digital payments platform PhonePe saw its revenues from operations jumping by 85 per cent to Rs 690 crore in the last financial year as the pandemic led to rising usage of digital payments in the country.
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Bengaluru, 16 October Digital payments platform PhonePe saw its revenues from operations jumping by 85 per cent to Rs 690 crore in the last financial year as the pandemic led to rising usage of digital payments in the country.
The company backed by US-based retailer Walmart Inc and homegrown ecommerce entity Flipkart, however, narrowed its losses with a lower margin. Its net loss stood at Rs 1,727 crore for the period.
Excluding the one-time allocation for employee stock options, PhonePe's losses narrowed down by 44 per cent at around Rs 884 crore, the regulatory filings showed.
The digital payments platform reduced its operational costs during FY21, resulting in narrowing down of losses. Its marketing and promotional spends, one of the major expense categories for the company, dropped about 47 per cent, to around Rs 535 crore. This expense was at Rs 1,016 crore in FY20. Its gross margin grew to 84 per cent in FY21 from 60 per cent from FY20.
PhonePe makes up 45 per cent of UPI monthly volumes and 47 per cent of the monthly value of transactions. The latest data of National Payments Corporation of India (NPCI) for August showed that PhonePe leads the market with a 49 per cent volume share.
Digital transactions surged during last fiscal year as customers turned to online payments amid the COVID-19 pandemic and subsequent lockdowns. In March this year, PhonePe became the first UPI player to cross $1 billion in transactions in a month
