PhonePe reports 40% revenue growth, trims net loss by 13%
What's the story
Walmart-backed PhonePe has reported a significant improvement in its financial performance for the fiscal year (FY) 2025. The Bengaluru-based fintech company managed to narrow its net loss by 13.4%, bringing it down to ₹1,727.4 crore from ₹1,996.1 crore in FY24. This positive trend comes on the back of a whopping 40.4% jump in operating revenue, which stood at ₹7,114.8 crore as against ₹5,064.1 crore last year.
Financial breakdown
Surge in payment processing charges
Despite the surge in revenue, PhonePe's total expenses for FY25 also increased by 21.1% to ₹9,394 crore. A major contributor to this rise was a sharp 44.7% increase in payment processing charges, which are fees paid by payment companies to banks for settling transactions. These costs shot up to ₹1,688.1 crore during the period under review.
Business diversification
Payment services continue to dominate revenue mix
PhonePe remains focused on its core business of payments, even as it expands into a full-stack financial services platform offering credit, insurance, and stockbroking. In FY25, revenue from payment services was ₹6,299.7 crore or 85% of total operating revenue. The company also got final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator.
Growth statistics
PhonePe is preparing for IPO
PhonePe now boasts over 650 million registered users and a merchant network of 45 million outlets. The company handles over 360 million transactions every day, amounting to an annualized total payment value (TPV) of more than ₹150 lakh crore. This impressive growth comes as it prepares for an initial public offering (IPO) later this year.