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Walmart-owned Flipkart's digital payments service PhonePe has more than doubled its revenue from operations to Rs 371.76 crore for the fiscal ended 31st March 2020 compared to Rs 184.22 crore in FY19.
The revenue growth has come on the back of a massive uptick PhonePe has seen for its Mutual Funds and Insurance offerings. Also the ad dollars the company earned as a result of the distribution of coupons and banner ads have contributed to this growth.
According to financial data accessed by business intelligence platform Tofler, the company reported a 7% decrease in net loss at Rs 1,771 crore for the fiscal compared to Rs 1904.7 crore in FY19. The company's EBITDA loss stood at Rs 1,742.63 crore during the fiscal under review.
Total expenses stood at Rs 2202.6 crore from Rs 2153.2 crore.
PhonePe, which competes with Google Pay and Paytm, had received Rs 150 crore fund infusion from its Singapore-based parent company PhonePe Pvt Ltd, Singapore in December. In FY20, PhonePe had received a fund infusion worth Rs 1,710 crore (around $240 million) from its parent company through three rounds of funding.
Prior to that, Flipkart had partially spun-off PhonePe. The company had said that the partial spin-off also provides PhonePe an opportunity to constitute a new Board of Directors focused on supporting its development, and to create a tailor-made equity incentive or ESOP program for its employees.
Flipkart had also stated that PhonePe will be raising $700 million in primary capital at a post-money valuation of $5.5 billion from existing Flipkart investors led by Walmart. Flipkart will remain PhonePe’s majority shareholder, and the two businesses will retain their close collaboration.
In just four years since its founding, PhonePe has crossed the 250 million registered user milestone, with over 100 million monthly active users (MAU) generating nearly one billion digital payment transactions in October 2020.
“Out of the 250 million registered users, PhonePe has 100 million monthly active users, 2.5 billion app fires in a month, 13 million merchants across 500 cities, 1 billion monthly transactions and $275+ billion annualized TPV run rate," PhonePe Founder & CEO Sameer Nigam had said during a keynote session at exchang4media's ‘Mobillion: Connecting the Next 500 Million’ virtual conference.