phonepe fy23 results: PhonePe FY23 revenues rise 77% to Rs 2,914 crore; payments business eyes operating profit

Walmart-backed digital payments major PhonePe’s consolidated revenue surged 77% in FY23 to Rs 2,914 crore from Rs 1,646 crore in FY22. The company said the growth was primarily driven by the expansion of the digital payments market, leadership in the digital payments sweepstakes and the launch and scale-up of products and businesses.

As of March 2023, the company said its total payments value (TPV) UPI market share stood at 50.54%. Data from NPCI shows that PhonePe recorded almost 5 billion transactions in September.

PhonePe also said that its payments business is moving towards becoming Ebitda positive — operationally profitable — (before Esop costs). Ebitda refers to earnings before interest, taxes, depreciation, and amortisation, while Esop refers to employee stock ownership plan.

According to the company, Ebitda losses for the standalone payments business, PhonePe India, rose 8.8% to Rs 1,755 crore in FY23 from Rs 1,612 crore in FY22. However, excluding Esop expenses, Ebitda stood at Rs 159 crore in FY23 compared with a loss of Rs 455 crore in FY22.

The Bengaluru-based firm said that it incurred a significant Esop expense owing to corporate restructuring that led to significant stock options being granted and a one-time payout for the same. Flipkart employees were given a one-time payout of around $700 million as part of separation of PhonePe from the Flipkart group. PhonePe has also moved its domicile to India.

Corporate developments

The digital payments major said it completed three crucial corporate developments in FY23. These are:
The company added that its focus in the future will remain on strengthening its leadership position in digital payments.

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