Thursday, December 31, 2020

PhonePe reports 7% decline in net losses for FY20, revenue rises 74%

 

PhonePe is currently valued at $5.5 billion from existing Flipkart investors led by Walmart with the e-commerce player holding majority shares in the company.



Walmart-owned digital payments firm PhonePe has posted a 7 per cent decline in its net loss for FY20 at Rs 1,771 crore, as compared to the previous financial year. This is the first time the platform has reported a decline in net loss since it was launched in 2015.

According to data accessed by business intelligence platform Tofler, the firm reported a 74 per cent rise in revenue at Rs 427 core for FY20, as compared with Rs 245 crore in FY19. It’s expenses, however, were slightly up by 2 per cent to Rs 2,202 crore in FY20, as compared to FY19.

PhonePe, which competes with technology giants such as Patym and Google Pay in the digital payments space, has ambitions to go public by 2023 for which Flipkart announced a partial spin-off of PhonePe to help it access dedicated, long-term capital to fund its growth ambitions.

Earlier in December, PhonePe raised $700 million in primary capital from existing Flipkart investors, including Tiger Global. The funding would help it to compete with rivals and help the company to hire 700 people, expand financial services and build solutions for small and medium businesses.

PhonePe is currently valued at $5.5 billion from existing Flipkart investors led by Walmart with the e-commerce player holding majority shares in the company.

While the company crossed the 250 million registered user milestone, it reported over 100 million monthly active users (MAU) and 2.3 billion app sessions in October 2020.

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