PhonePe revenue grows 77% to Rs 2,914 crore in FY23

Fintech firm PhonePe on Wednesday said it has registered a 77 per cent growth in consolidated revenue to Rs 2,914 crore for FY23 on account of market expansion and digital money transfers.

The Walmart group company had posted revenue of Rs 1,646 crore in the financial year 2022.

"We recorded a consolidated revenue of Rs 2,914 crore in FY23, which represents a 77 per cent year-on-year growth over FY22 revenue of Rs 1,646 crore. This growth is led primarily by our focus on market expansion and leadership in the digital payments market, especially in major revenue-contributing use cases like Money Transfers, Mobile Recharges and Bill Payments," PhonePe said in a statement.

PhonePe India Pvt Ltd -- which houses the payments business -- posted a widening of operating loss (EBITDA) before ESOP cost to Rs 1,755 crore during the reported fiscal from Rs 1,612 crore.

"Our rapid top-line growth and investments in new opportunities are accompanied by our Payments business moving towards positive EBITDA (before ESOP costs)...on an adjusted basis (excluding ESOP expenses), it stood at Rs 159 crore in FY23 versus a loss of Rs 455 crore in FY22, thus marking a significant milestone for our payments business," PhonePe said.

The company said that its recently concluded equity fundraising of Rs 7,021 crore from long-term investors like General Atlantic, Walmart, Ribbit Capital, TVS Capital Funds and Tiger Global will enable it to invest in the country.

PhonePe firm has raised funds at a pre-money valuation of $12 billion, which makes it the most valued fintech firm in the country.

"The fundraise equips us with the required capital to invest behind new businesses, which in turn, will simultaneously grow and diversify our revenue and profit pools. Going forward, our focus will remain on strengthening our leadership position in Digital payments while growing the business sustainably and profitably," the statement said.