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Bengaluru, October 18 Fintech major PhonePe has reported a revenue of ₹1,646 crore, while its losses (excluding ESOP costs) came up to ₹671 crore in FY22, as compared to a loss of ₹789 crore in FY21.
In comparison, PhonePe’s revenue from operations in FY21 was ₹690 crore and ₹372 crore in FY20. “The increase in revenue is primarily driven by the robust growth PhonePe has seen across all its lines of businesses. PhonePe’s contribution margin grew to 88 per cent vs 84 per cent the previous year, on account of improved cost optimisation, process automation and a favorable product mix,” the company said in a statement.
On the cost side, marketing investments grew to ₹866 crore. The increase is largely attributable to the marketing campaign for its new Insurance distribution business during the ICC Cricket World Cup in 2021, and again during IPL in 2022. Employee costs have increased by ₹162 crore in FY22, on account of rapid hiring to build new product lines (Insurance, Wealth Services and others).
Earlier this month, PhonePe announced moving its domicile from Singapore to India. Over the past year, PhonePe has moved all businesses and subsidiaries of PhonePe Singapore to PhonePe Pvt Ltd - India directly. This includes its Insurance Broking Services and Wealth Broking businesses.
Further, PhonePe’s board recently approved the creation of a new ESOP plan and the migration of 3,000+ PhonePe Group employees’ existing ESOPs by issuing new ESOPs under PhonePe India’s new plan.
PhonePe has also moved the ownership of recently acquired IndusOS Appstore (OSLabs Pte Ltd) from Singapore to India. Following these actions, all PhonePe Group businesses and entities are now wholly owned by and consolidated under PhonePe Pvt Ltd - India.
PhonePe was founded in December 2015, and now has 400 million registered users. The company has also digitized 30+ million offline merchants spread across Tier 2,3,4 and beyond. PhonePe forayed into financial services in 2017, providing users with an option to buy 24-karat gold, and also launched silver on its platform.
Since then, PhonePe has introduced several mutual funds and Insurance products like tax-saving funds, liquid funds, international travel insurance, life insurance, COVID-19 insurance amongst others. Using PhonePe, users can also send and receive money, recharge mobile, DTH, pay at stores and make all their utility payments.
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