The PhonePe Group reported an adjusted profit after tax of Rs 197 crore for the financial year 2023-24, marking a sharp recovery from a loss of Rs 738 crore in the previous fiscal year. The company’s revenue also saw impressive growth, jumping 74% to Rs 5,064 crore in FY24, compared to Rs 2,914 crore in FY23.
Strong Performance in Payments Business
PhonePe’s standalone payments business was a major contributor to this success, recording an adjusted profit after tax of Rs 710 crore in FY24, a dramatic improvement from the Rs 194 crore loss in the previous year. This achievement underscores PhonePe’s focus on operational efficiency and automation, which have been key drivers in enhancing profitability while maintaining robust growth.
Strategic Focus on Sustainable Growth
Adarsh Nahata, PhonePe’s Chief Financial Officer, emphasized the company’s financial strategy, highlighting three pillars: sustainable revenue growth, diversification of revenue streams, and continuous improvements in profitability. “These pillars have guided our strategic decisions, enabling us to scale rapidly while maintaining a focus on profitability and our healthy financial position,” Nahata said.
CEO’s Vision for Future Growth
Founder and CEO Sameer Nigam expressed confidence in PhonePe’s financial discipline and its role in achieving profitability in the competitive Indian payments market. “We believe a focus on disciplined financial management will help us continue in the progression towards profitability of our Payments business, which by itself is a unique feat in the Indian context,” said Nigam. He also stressed the importance of optimizing investments and capital allocation, along with building a diversified revenue model, as crucial to the company’s sustained success in the future.
PhonePe’s remarkable performance in FY24 reflects its strong market position and strategic approach, setting a solid foundation for continued growth and profitability in the years to come.