The operating revenue of the Bengaluru-based fintech company surged 40.4% to Rs 7,114.8 crore in FY25, from Rs 5,064.1 crore a year earlier.
Total expenses during the year, however, shot up 21.1% to Rs 9,394 crore. Payment processing charges, the fees borne by payment companies for settling transactions with banks, soared 44.7% to Rs 1,688.1 crore, while employee benefit expenses increased 13.6% during the period.
While the company has diversified into a full-stack financial services platform, offering credit, insurance, and stockbroking, it remains anchored to its core business of payments.
In FY25, revenue from payment services stood at Rs 6,299.7 crore, accounting for 85% of total operating revenue. Revenue from insurance and lending distribution services came in at Rs 557.6 crore, contributing around 8%. Revenue from other services, which includes stockbroking, mutual fund distribution, and marketplace platform services, was Rs 57.2 crore.
On September 19, PhonePe announced it had received final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator, allowing it to expand its presence among online merchants, particularly small and medium businesses.
The company recently said it has more than 650 million registered users and a merchant network spanning 45 million outlets. It processes over 360 million transactions daily, with an annualised total payment value (TPV) of more than Rs 150 lakh crore.
The company has also been preparing for an initial public offering (IPO) later this year. It has hired Kotak Mahindra Capital, JPMorgan Chase, Citigroup, and Morgan Stanley as bankers for the issue. The company also transitioned from a private to a public entity in April.
Earlier this month, the RBI imposed a monetary penalty of Rs 21 lakh on PhonePe for non-compliance with certain regulatory provisions governing prepaid payment instruments (PPIs).