Walmart-owned fintech platform PhonePe said its major losses, excluding ESOP-related costs, narrowed due to strong growth across all of its businesses. According to its filing, its consolidated operating income more than doubled (2.3X), increasing by 138% to Rs 1,646 crore in the financial year ended March 31, 2022, from Rs 690 crore the last year. “The increase in revenue is primarily due to the robust growth PhonePe has experienced across all of its lines of business,” the filing said.
The Bengaluru-based fintech, which competes with Paytm, Google Pay and Amazon Pay, EBITDA or Earnings Before Interest, Taxes, Depreciation and Amortization, excluding ESOP (Employee Stock Ownership Plan) costs, slashed by 15% to Rs 671 crore over the year.
The company had last reported a net loss of Rs 1,727.87 crore in the financial year 2021, according to its latest available financial statements which it had filed with the Registrar of Companies.
However, the Bengaluru-based startup’s spending has also surged over the past year. To promote its insurance distribution business, PhonePe had launched a marketing campaign during the ICC Cricket World Cup in 2021 and IPL in 2022. This led to increased costs, the company said.
Its personnel costs also rose slightly on new hires as it added more product lines, including wealth management services.
“Marketing expenses, which constitute a significant portion of the company’s costs, increased by around 62% to Rs 866 crore during the year. The increase is largely attributable to the marketing campaign for its new insurance distribution business during the ICC Cricket World Cup in 2021, and again during the IPL in 2022,” the statement read. PhonePe.
Employee cost increased by 41% to Rs 555 crore in FY 2022.
The fintech giant is one of the country’s leading UPI payment platforms. In 2020, it was sold to Flipkart. Currently, Flipkart is still the largest shareholder of PhonePe.