Walmart-backed PhonePe Group posts Rs 197 cr profit for FY24

New Delhi: Walmart-backed PhonePe Group on Monday reported a consolidated net profit, excluding ESOP costs, of Rs 197 crore for fiscal year 2023-24.

It had incurred a loss of Rs 738 crore in the previous fiscal, according to a company statement.

Revenue in FY24 was Rs 5,064 crore, 73.7 per cent higher than Rs 2,914 crore in FY23.

The group's payment business reported a standalone net profit (excluding ESOP costs) of Rs 710 crore in FY24, against a loss of Rs 194 crore in the preceding fiscal.

The group has expanded into financial services (insurance, lending, wealth) as well as new consumer tech businesses (pincode - hyperlocal e-commerce and Indus App Store). The company has not provided the results of these verticals.

PhonePe has been able to achieve growth and diversification of revenue through a combination of market leadership, platform reliability and cross-selling a diverse product portfolio, the statement said.

This achievement is a result of PhonePe’s focus on driving operating leverage through automation and cost efficiencies, it added.

"Our financial strategy is anchored on three key pillars: (1) predictable and sustainable growth in revenue, (2) diversification of revenue streams, and (3) continuing improvements to the bottom line," PhonePe CFO Adarsh Nahata said.

These pillars have guided the firm's strategic decisions and enabled it to scale rapidly and a focus on disciplined financial management will help it continue in the progression towards profitability of the payments business, he added.

Sameer Nigam, Founder and CEO said the optimisation of investments and capital allocation, in conjunction with building a diversified revenue model, and remaining customer-focused, will provide a solid foundation for sustained future success.