Digital payments giant PhonePe has reported a significant improvement in its financial performance for the fiscal year 2024-25 (FY25). The company reduced its losses to ₹1,727 crore, compared to ₹2,795 crore in FY24, while its revenue grew 40% year-on-year to ₹5,712 crore.
This marks a crucial step toward profitability for one of India’s leading fintech players, backed by Walmart.
Strong Growth in Payments and Insurance
PhonePe said its payments business and cross-selling of services like insurance, mutual funds, and gold investments contributed to the revenue jump. The platform continues to dominate India’s Unified Payments Interface (UPI) market, holding over 46% share in transaction volumes.
Focus on Profitability
Despite the heavy spending on customer rewards, marketing, and technology, PhonePe has managed to reduce cash burn by optimising expenses and driving growth in new verticals. The company is also expanding into lending and wealth management, aiming to diversify revenue streams.
Industry Context
PhonePe competes with players like Google Pay, Paytm, and Amazon Pay, but remains the largest UPI payments platform in India. Analysts believe that if PhonePe sustains this growth, it could move closer to profitability in the next two to three years.
Summary Table
| Metric | FY24 | FY25 | Change |
|---|---|---|---|
| Revenue | ₹4,080 crore | ₹5,712 crore | +40% |
| Net Loss | ₹2,795 crore | ₹1,727 crore | -38% |
| UPI Market Share | ~45% | ~46% | Slight increase |
| Key Growth Drivers | Payments, insurance, gold investments, mutual funds | Payments, insurance, lending, wealth management | Diversification continues |
