Phonepe’s losses soar to Rs 1,907 crore for FY19
Walmart-owned digital payment firm Phonepe saw its losses more than double to Rs 1,907 crore ($268.8 million) for the financial year 2018-19 as against Rs 791 crore it had reported in the previous fiscal.
The company’s total revenue for the fiscal jumped 5 times to Rs 246 crore as against Rs 49 crore in had reported in the previous financial year, according to its latest filings with the registrar of companies (RoC).
Phonepe has been on an expansion drive investing heavily to increase its footprint offline especially in tier 2, 3 and 4 towns which resulted in higher expenses for the year.
The company’s total expenses stood at Rs 2,153 crore for the year as compared to expenses of Rs 840 crore reported in the fiscal year 2018.
Phonepe is unperturbed with the losses and will continue to focus on customer acquisition. The company had received a capital infusion of Rs 698 crore from its parent entity in Singapore to fuel its expansion plans in India.
Flipkart’s payment business PhonePe is valued at $7 billion and competes with digital payment giants like Paytm, Google Pay, Mobikwik among others. At present, PhonePe is present in more than 150 cities across India and claims to have over 100 million users.
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