© Reuters.
PhonePe, a prominent digital payments firm, reported a 77% annual revenue increase to INR 2,914 crores (approximately $390 million) on Thursday. The surge was primarily driven by its market expansion and dominance in money transfers, mobile recharges, and bill payments. The company also diversified into other areas such as smart speakers and insurance distribution, which further bolstered its revenue.
By the end of March this year, PhonePe had secured a substantial 50.54% share of the Unified Payments Interface (NASDAQ:) (UPI) total value payments, which amounted to Rs. 14,10,443.01 crore. This was achieved despite strong competition from rivals such as Paytm.
In addition to its core operations, PhonePe launched several new offerings that contributed to its financial growth. These included smart speakers, rent payments, insurance distribution services, and the Share. Market stockbroking platform. The firm successfully deployed 4.1 million smart speakers within this period.
PhonePe’s strategic collaborations also played a significant role in its growth trajectory. The company partnered with Nokia (NYSE:) and Lava to pre-install the Indus Appstore on their devices – a move aimed at disrupting Google (NASDAQ:)’s app store monopoly.
As part of an organizational restructure, PhonePe dispersed substantial employee stock option plans (ESOPs) and raised INR 7,021 crores ($940 million) in equity funding. This shot up its valuation to $12 billion. The company also relocated its headquarters from Singapore to India and completed its separation from the Flipkart Group.
Notably, after accounting for ESOP costs, PhonePe India Pvt Ltd’s standalone EBITDA improved from INR -1,755 Crores to INR 159 Crores. The positive adjusted EBITDA reflects the firm’s strong financial performance amidst its diversification efforts and market expansion.
The performance of Zerodha, a leading stock brokerage firm in India, indicates promising prospects for PhonePe’s newly launched Share. Market platform. This development further highlights the company’s strategic moves to capture a larger share of the digital payments and financial services market.
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