The above graph represents the PhonePe net loss by year, starting from fiscal 2016 to the recently completed year. Walmart-owned digital payment startup witnessed a huge surge in its net losses during the financial year ended March 31, 2019. The annual net loss of PhonePe increased to a massive Rs 1,907.4 crore in FY 2019, from just Rs 791.03 crore the company had in the previous year.
|Source||Registrars of Companies (ROC)|
|Note||India fiscal year starts from April 1st|
The higher employee cost, marketing and advertising spending, etc. are the primarily reasons behind the increasing losses of PhonePe, every year.
It is important to note that PhonePe’s annual revenues and net losses, both have been increasing ever since the company was founded in 2015. In FY 2016, the company reported nearly Rs 19 lakh in revenue, with a net loss of Rs 4 crore.
In FY 2017, PhonePe losses surged 32x to Rs 129.01 crore, despite witnessing a massive 1,489.5% YoY growth in revenue. In just one year, the company saw its loss widen to Rs 791.03 crore, while the revenue from operations amounted Rs 42.79 crore. If we do the math, PhonePe had to burn nearly Rs 66 crore a month to generate monthly revenues of Rs 3.57 crore.
About PhonePe: Additional Information
PhonePe Private Limited (Formerly known as FX Mart Pvt Ltd) is an Indian digital payment company, founded in December 2015 by Sameer Nigam, Rahul Chari and Burzin Engineer. The company has its headquarters in Bengaluru, India.
In April 2016, PhonePe was acquired by Flipkart – the India’s biggest e-commerce platform.
PhonePe, the first mobile wallet app that integrated Unified Payments Interface (UPI), went live on Google Play Store in August 2016 and the iOS App Store in January 2017.
With currently over 60 million MAUs in India, PhonePe app allows people to send and receive money, recharge mobiles and data cards, make utility payments, order food online, book Ola rides, movie tickets, IRCTC train, flights and Redbus tickets, etc.
On January 31, 2018, PhonePe announced a strategic partnership with FreeCharge, another digital payment company. This partnership has empowered over 45 million users to link their existing FreeCharge wallets to the PhonePe app. The company’s other strategic partnerships include redBus (Feb 26, 2018), Ola (June 28, 2018), Jio Money, Airtel Money, etc.
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