PhonePe Trims Operating Loss, More Than Doubles Revenue In FY22
While PhonePe's revenue crossed Rs 1,600 crore, it reported a net loss of Rs 472 crore in FY22.
PhonePe, India's most used UPI payments platform, more than doubled its revenue in financial year 2021-22.
The firm's revenue rose 138% to Rs 1,646 crore in FY22, according to its earnings announcement.
PhonePe competes with the likes of GooglePay, Paytm, and other UPI payment platforms, many of whom now also operate a marketplace for financial products such as insurance and mutual funds.
Expenses grew 54% over the previous previous financial year to Rs 2,118 crore. PhonePe's Ebitda loss—earnings before interest, taxes, depreciation and amortisation—excluding costs related to employee stock options narrowed from Rs 789 crore in FY21 to Rs 671 crore in FY22.
Marketing expenses—the biggest cost centre for PhonePe—jumped about 62%.
"On the cost side, marketing investments grew to Rs 866 crore. The increase is largely attributable to the marketing campaign for its new Insurance distribution business during the ICC Cricket World Cup in 2021, and again during IPL in 2022," PhonePe said in a statement announcing the results.
PhonePe's employee costs also jumped by Rs 162 crore in financial year 2021-22. The platform currently has 400 million (40 crore) registered users and processed 322 crore payments worth Rs 5.49 lakh crore in September, according to data from the National Payments Corporation of India.
The Walmart-backed firm also recently moved its domicile from Singapore to India in the run-up to its plan to launch an initial public offering on Indian bourses.
