Walmart-owned Indian digital payments unicorn PhonePe's revenue surged 77% during the year ended March 2023, on the back of rapid product expansion.
The app's consolidated topline increased to Rs 2,914 crore during the period under review against Rs 1,646 crore in FY22, the company said in a statement on Wednesday.
Its operational loss, however, widened in FY23. PhonePe reported an Ebitda (earnings before interest, taxes, depreciation, and amortisation) loss of Rs 1,755 crore for the payments business in FY23, compared to Rs 1,612 crore in FY22.
The company, however, said its Ebitda on an adjusted basis, which excludes Esop expenses, stood at a positive Rs 159 crore in FY23, making the payments business profitable. This is a turnaround from a negative Ebitda of Rs 455 Crs in FY22.
Besides market expansion in areas such as money transfers, mobile recharges and bill payments, the company said the growth was also driven by the launch and scale-up of new products and businesses such as smart speakers, rent payments and insurance distribution.
In the last few months, since it concluded its separation from Flipkart, PhonePe has been in the process of raising $1 billion at a valuation of $12 billion. It also shifted its domicile to India from Singapore previously. It is backed by the likes of General Atlantic, Ribbit Capital, TVS Capital Funds and Tiger Global.
It has also launched multiple new businesses beyond payments, including the most recent one when it entered the stock broking business. PhonePe says it has about 50.5% share in Total Payments Value (TPV) in UPI.
The company is betting on diversification, expecting the new businesses to contribute to its revenue and profit pools.
“Going forward, our focus will remain on strengthening our position in digital payments while growing the business sustainably and profitably,” PhonePe said.
“We believe the combination of our sustainable and profitable payments business along with the suite of new businesses will result in a well-diversified revenue portfolio with robust growth and group level profitability in the ensuing years,” it added.