Fri. Mar 29th, 2024

PhonePe, digital payments arm of Walmart-owned Flipkart, posted operating revenue of ₹42.79 crore in FY18, growing at a remarkable pace from ₹3.02 crore in FY17, according to the documents filed with the Registrar of Companies (RoC).

According to the documents, the revenues were mainly classified into three categories, namely, sales of services, commission income, and interest income.

The growth comes at the back of rising losses, which grew six times to reach ₹791 crore in FY18, from ₹129 crore in the previous fiscal.

A major part of the steep loss was attributed to the rising operating and administrative expenses, which grew from ₹146.34 crore in FY17, to ₹840 crore in FY18.

A significant part of the expenses can be attributed to the marketing and promotions expenses, which grew to ₹602.28 crore in FY18, making up around 72% of the entire expenses. Also, employee expenses formed rose to ₹130.12 crore, with marketing and employee expenses making up around 88% of the entire expenses.

In the documents filed with the RoC, the company said, that during the FY19, “the company has scaled up its operations significantly by onboarding more merchants and forming strategic partnerships, which have led to a surge in the company’s customer base and the number of transactions per customer. Consequently, the revenue from operations of the company has grown phenomenally by around 14 times its revenue for the previous year.”

PhonePe is further looking to explore other business avenues across payments and e-commerce space, in order to grow.

The digital payments platform has been aggressively expanding and acquiring customers, as it competes with the digital payments giant Paytm.

Earlier in August 2018, PhonePe claimed the top spot in UPI transactions, by acquiring 40% market share in July. It further raised ₹451 crore in internal funding from Flipkart.

Later in September 2018, PhonePe partnered with PayU, in order to expand online merchant base.

Earlier this month, PhonePe partnered with OYO, to enable bookings through its platform.

By Varun

Startups | Books | Ideas

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