PhonePe Group posts Rs 197 cr profit for FY24

NEW DELHI: Walmart-backed PhonePe Group on Monday reported a consolidated net profit, excluding ESOP costs, of Rs 197 crore for fiscal year 2023-24.

It had incurred a loss of Rs 738 crore in the previous fiscal, according to a company statement.

Revenue in FY24 was Rs 5,064 crore, 73.7 per cent higher than Rs 2,914 crore in FY23.

The group’s payment business reported a standalone net profit (excluding ESOP costs) of Rs 710 crore in FY24, against a loss of Rs 194 crore in the preceding fiscal.

The group has expanded into financial services (insurance, lending, wealth) as well as new consumer tech businesses (pincode - hyperlocal e-commerce and Indus App Store). The company has not provided the results of these verticals.

PhonePe has been able to achieve growth and diversification of revenue through a combination of market leadership, platform reliability and cross-selling a diverse product portfolio, the statement said.

This achievement is a result of PhonePe’s focus on driving operating leverage through automation and cost efficiencies, it added.

“Our financial strategy is anchored on three key pillars: (1) predictable and sustainable growth in revenue, (2) diversification of revenue streams, and (3) continuing improvements to the bottom line,” PhonePe CFO Adarsh Nahata said.

Sameer Nigam, founder-CEO said the optimisation of investments and capital allocation, in conjunction with building a diversified revenue model, and remaining customer-focused, will provide a solid foundation for sustained future success.