Indian fintech giant PhonePe has turned profitable, the company said, after it reported a positive adjusted profit after tax (PAT) for the fiscal year 2023-24.

What Happened: PhonePe posted a PAT of ₹197 crore for FY23-24, as opposed to a loss of ₹738 crore in FY22-23, the company said in a statement on Monday.

The firm’s revenue for FY23-24 stood at ₹5,064 crore, marking a 74% increase from the previous fiscal year’s revenue of ₹2,914 crore. The standalone payments business recorded an adjusted profit after tax of ₹710 crore for FY23-24, a significant improvement from the ₹194 crore loss in FY22-23.

PhonePe attributed its financial success to their focus on operating leverage through automation and cost efficiencies, as well as the diversification of revenue through market leadership, platform reliability and cross-selling a diverse product portfolio.

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Adarsh Nahata, CFO of PhonePe, stated that their financial strategy,  built on three key pillars- predictable and sustainable growth in revenue, diversification of revenue streams and continuous improvements to the bottom line have guided their strategic decisions, enabling them to scale rapidly while maintaining profitability and a healthy financial position.

“We believe a focus on disciplined financial management will help us continue in the progression towards profitability of our Payments business which by itself is a unique feat in the Indian context. We also view that the optimization of investments and capital allocation, in conjunction with building a diversified revenue model, and remaining customer-focused, will provide a solid foundation for sustained future success,” Sameer Nigam, founder and CEO of PhonePe, added.

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