Press Release

Press Release

PhonePe Earnings Release

National, October 18th, 2023: FY 22-23 has been a pivotal year for PhonePe – we continued our rapid top-line growth, diversified our revenue from nonpayment businesses, progressed towards positive EBITDA (before ESOP cost) and executed key strategic actions geared towards long-term future growth. 

We recorded a consolidated revenue of INR 2,914 Crs in FY23, which represents a 77% YoY growth over FY22 revenue of INR 1,646 Crs. This growth is led primarily by our focus on market expansion and leadership in the digital payments market, especially in major revenue-contributing use cases like Money Transfers, Mobile Recharges and Bill Payments. UPI Total Payments Value (TPV) market share stood at 50.54% in Mar’23, Furthermore, revenue growth was also driven by the launch and scale-up of new products and businesses such as Smart Speakers, Rent Payments, and Insurance Distribution. For example, As of 31st Aug 2023, Smart Speaker deployment stands at 4.1 Mn. 

Our rapid top-line growth and investments in new opportunities are accompanied by our Payments business moving towards positive EBITDA (before ESOP costs). While EBITDA for the standalone PhonePe India Pvt Ltd entity (which houses our Payments business) stood at INR -1,755 Crs in FY23 vs. INR -1,612 Crs in FY22, on an Adjusted basis (excluding ESOP expenses), it stood at INR 159 Crs in FY23 vs. INR -455 Crs in FY22, thus marking a significant milestone for our Payments business. Substantial ESOPs were granted in FY23 towards the corporate restructuring and as one-time rewards for setting up and incentivizing new business. 

Lastly, In FY23 we completed 3 critical actions that have set a solid foundation for PhonePe Group’s future growth. Firstly, we completed our full spinoff from Flipkart Group. Secondly, we moved our domicile to India from Singapore. Thirdly, we concluded an equity fundraising of INR 7,021 Crs from long-term investors like General Atlantic, Walmart, Ribbit Capital, TVS Capital Funds and Tiger Global, pegging PhonePe at a $12 Bn pre-money valuation. These actions enable us to invest in India for the long-term and create a sustainable ecosystem and shareholder value in India. The fundraise equips us with the required capital to invest behind new businesses which in turn will simultaneously grow and diversify our revenue and profit pools. Going forward, our focus will remain on strengthening our leadership position in Digital Payments while growing the business sustainably and profitably. We are also at a unique juncture where we have launched multiple new businesses, which are now ready to be scaled up with sufficient investment capital. 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.

(Market share calculations are based on NPCI published data on “Customer Initiated Payments” – Link:

About PhonePe:

PhonePe was founded in December 2015 and has emerged as India’s largest payments app, enabling digital inclusion for consumers and merchants alike. With 49+ crore (490+ Million) registered users, one in four Indians are now on PhonePe. The company has also successfully digitized 3.6+ crore (36+ Million) offline merchants spread across Tier 2,3,4 and beyond, covering 99% of the postal codes across India. PhonePe is also the leader in Bharat Bill Pay System (BBPS), processing over 45% of the transactions on the BBPS platform. PhonePe forayed into financial services in 2017, providing users with safe and convenient investing options on its platform. Since then, the company has introduced several Mutual Funds and Insurance products that offer every Indian an equal opportunity to unlock the flow of money and access to services. PhonePe was recently recognized as the Most Trusted Brand for Digital Payments as per the Brand Trust Report 2023 by Trust Research Advisory (TRA).

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