Phonepe registers a revenue of Rs 690 Cr in FY21; jumps by 85.5%

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Digital payments company PhonePe has reported a revenue of ₹690 crores in FY 21, which is about an 85.5 percent jump from ₹372 crore revenue reported in FY20, according to the company’s recent regulatory filings.

The majority of the company’s revenue has come from payments and allied services. PhonePe claims to have a 45 percent market share in digital payments, and a 300 million user base.

Further, the company’s net loss during the period stood at ₹1,727 crores as compared to ₹1,771 crores in FY20. A major part of the company’s cost this year was on employee benefits.

Excluding the ESOPs allocated by the company in FY21, PhonePe’s costs during this period stood at ₹884.4 crore, which is about 44 percent less than costs incurred last year.

The company reduced various costs during this period, including the marketing and promotional expenses which stood at ₹535 crores in FY 21, as compared to ₹1,016 crores in FY 20, about 47 percent drop in these costs. Further, costs like payment processing fees and customer support also were brought down by 28 percent and about 34 percent respectively.

PhonePe is digital payments platform with over 300 million registered users. Using PhonePe, users can send and receive money, recharge mobile, DTH, data cards, pay at stores, make utility payments, buy gold and make investments.

PhonePe forayed into financial services in 2017 with the launch of the gold category, providing users with an option to buy 24-karat gold securely on its platform. PhonePe has since launched several mutual funds and insurance products like tax-saving funds, liquid funds, international travel insurance, life insurance, and insurance for the Covid-19 pandemic among others. PhonePe is also accepted at 20+ million merchant outlets across India.

The most frequent use-cases on the PhonePe app are said to be digital money transfers, bill payments or recharge, and offline transactions at stores through PhonePe. It had also launched ClickPay for its customers in association with NPCI Bharat BillPay Ltd.(NBBL), which is a payment link that enables customers to make recurring online bill payments(electricity, water, gas, loan, etc) and removes the need to remember tedious account details associated with each biller/service.