IPO-bound PhonePe has strengthened its financial performance in FY25, recording a 40% jump in revenue alongside a 13% reduction in net losses. According to consolidated filings with the Registrar of Companies (RoC), the Walmart-owned fintech major reported revenue from operations of ₹7,115 crore, up from ₹5,064 crore in FY24.
Key Highlights
- PhonePe's FY25 revenue surged 40% to ₹7,115 crore; net loss narrowed to ₹1,727 crore.
- Adjusted PAT turned positive at ₹630 crore; adjusted EBITDA reached ₹1,477 crore in FY25.
A bulk of its earnings came from payment services, including transaction fees, platform charges, subscription fees for payment devices, and advertising revenue. This segment alone contributed 88.5% of operating revenue, growing 31.6% YoY to ₹6,300 crore. Additional contributions from insurance and lending, RBI incentives, stock broking, mutual fund distribution, and marketplace services further boosted overall revenue.
Including ₹516 crore in gains on financial assets, total income rose to ₹7,631 crore in FY25 from ₹5,722 crore in FY24.
On the expense side, employee benefits remained the largest cost center at ₹4,097 crore, of which ₹2,358 crore were ESOP-related. Payment processing costs came in at ₹1,688 crore, while advertising and promotion expenses fell 21.6% YoY to ₹542 crore. Overall expenditure rose to ₹9,394 crore in FY25 versus ₹7,754 crore a year earlier.
As a result, PhonePe reported a net loss of ₹1,727 crore, lower than the ₹1,996 crore posted in FY24. However, excluding ESOP costs, the company turned profitable with a ₹630 crore adjusted PAT. Adjusted EBITDA (excluding ESOPs) stood at ₹1,477 crore. Despite improvements, accumulated net losses reached ₹14,860 crore by FY25-end.
Also Read: PhonePe to File Confidential IPO by Sept, Targets $10-15 Bn Valuation
PhonePe continued to dominate India’s digital payments market, holding 45.7% share by volume and 48.3% by value as of August, per NPCI data. The company is now preparing for a $1.5 billion IPO at a $15 billion valuation, marking a significant milestone in its growth journey.
Since Walmart’s acquisition of Flipkart in 2018, PhonePe has emerged as its most valuable asset, benefiting from a strong user base and reduced reliance on advertising. With flexible pricing models on the horizon and profitability within reach, analysts suggest PhonePe could soon rival — or even surpass — Flipkart in strategic importance to Walmart.
