PhonePe narrows FY25 loss to Rs 1,727 cr as revenue rises 40%

BENGALURU: PhonePe Limited has reported a significant improvement in its financial performance for the fiscal year ended March 2025, narrowing its consolidated net loss to Rs 1,727 crore from Rs 1,996 crore the previous year. This recovery comes on the back of growth in operating revenue, which climbed 40% year-on-year to reach Rs 7,115 crore according to the company’s audited financial statements reviewed via Tofler.

Payment services accounted for the bulk of PhonePe’s revenue, contributing Rs 6,299 crore. Insurance and lending distribution brought in Rs 558 crore, while revenue from brokerage, mutual fund distribution and new marketplace business totalled Rs 57 crore. Income from interest and investments added another Rs 517 crore to the company’s topline.

Expenses grew in tandem with business operations, rising to Rs 9,394 crore. Employee benefit costs, including share-based compensation, reached Rs 4,097 crore. Payment processing charges amounted to Rs 1,688 crore and depreciation and amortisation totalled Rs 1,360 crore. Advertising, IT and other operating expenses rose to Rs 2,210 crore. Despite these ongoing investments, the company turned free cash flow positive, generating Rs 1,202 crore in operating cash flow for the year.

PhonePe completed its shift of legal domicile from Singapore to India in 2024, enabling local IPO preparation and regulatory compliance. During the period, the company also received final authorisation from the Reserve Bank of India to operate as a payment aggregator, expanding its merchant services portfolio.