PhonePe narrows FY24 loss to INR 1,996 cr on back of 74% revenue growth and cost optimisation

Mumbai: Leading digital payments provider PhonePe has taken a major step towards profitability after reducing its net loss for the financial year 2023-24 by almost a third.

According to the company’s first ever annual report, PhonePe’s consolidated net loss for FY24 stood at INR 1,996 crore – a significant 28% decrease from INR 2,795 crore in the previous fiscal. This progress was powered by a 74% surge in operating revenue to INR 5,064 crore for the year ended March 2024.

PhonePe credits its relentless focus on automation and cost control for the clear path towards profitability. It was able to slash customer support staff by 60% over 5 years while handling a massive 40 times increase in transactions. The company’s standalone payments business achieved an adjusted profit of INR 710 crore for FY24.

Despite obstacles such as zero payment gateway fees, PhonePe grew both its user base and offerings. Its diverse portfolio of financial services helped boost revenue. The payment firm aims to continue leveraging technology for improved unit economics as it works to fully achieve profitability in the near future.