The company also said it has achieved profitabilityexcluding employee stock ownership plan (Esop) costs, with an adjusted net profit of Rs 197 crore for Fiscal year 24compared with a loss of Rs 738 crore in FY23.
The Walmart-backed company’s improved financial performance is driven by strong results in its standalone payments business, which posted an adjusted profit of Rs 710 crore, compared with a loss of Rs 194 crore a year earlier.
“We believe that focusing on disciplined financial management will help us continue to drive profitability in our payments business, which in itself is a unique feat in the Indian context,” said Founder and CEO Sameer Nigam.
Read also | PhonePe invested the bulk of Rs 800 crore in the insurance business
“We also believe that optimizing investments and capital allocation, along with building a diversified revenue model and customer focus, will provide a solid foundation for sustained future success.”
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In the June quarter of FY24, PhonePe processed 24 billion proceedings across all payment instruments, with a total transaction value of Rs 31.8 lakh crore. The company remains India’s largest Unified Payments Interface (UPI) payment app, with about 48% of the market share in terms of number of transactions. The Bengaluru-based firm has been actively expanding its product range beyond payments, venturing into insurance, business lending, and wealth management in a broader effort to diversify its revenue streams.
On August 7, ET reported that PhonePe is exploring expansion of its retail payment operations in new geographies including Southeast Asia and the Gulf. This comes as the National Payments Corporation of India (NPCI) is leading efforts to extend UPI to new markets such as Sri Lanka, Bhutan, Nepal, Singapore and France.
PhonePe’s financials have been announced amid reports that the government’s proposed 30% market share cap in the UPI segment is unlikely to be enforced, with just over four months remaining.
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