PhonePe is growing extremely well in the digital payments sector. The company is backed by some big names such as the US-based retailer Walmart Inc and homegrown e-commerce entity Flipkart which is also owned by Walmart.
PhonePe recently reported revenue from its operations of Rs 690 crore in the previous financial year, which is a jump of 85%. the company is currently competing with some big payers in the market such as Paytm, Google Pay, and Amazon Pay. The company has also reported a marginally lower net loss of Rs 1,727 crore for the period.
Excluding a one-time allocation for employee stock options, the loss is around Rs 884 crore, down around 44%. this loss is the result of the digital payment service cutting its operational costs. It has significantly reduced its marketing and promotional spends, by around 47%, to about Rs 535 crore from Rs 1,016 crore in FY20.
The company’s revenue increase on the other hand is the result of its continuously expanding outside payments to build a financial services business that has started generating revenue for the company. Just last month the company’s co-founder and chief executive Sameer Nigam stated that the company may apply for an Asset Management Company (AMC) license. This license will allow PhonePe to its mutual funds in the market.
The digital payment service is already selling mutual funds of other companies on its platform, besides insurance policies. And currently, it’s one of the leading digital payment service providers in the Indian market. It’s a top-dog on the Unified Payments Interface (UPI) as well as the Bharat Bill Payment Systems.