PhonePe loss without ESOP cost narrows to Rs 671 crore in FY22

NEW DELHI: Walmart-owned fintech firm PhonePe on Tuesday reported narrowing of its loss, excluding ESOP cost, to Rs 671 crore for the financial year 2021-22.


PhonePe had registered a loss, without employee stock ownership plan (ESOP) cost, of Rs 789 crore in the previous financial year (FY) 2021.

The revenue from operations more than doubled to Rs 1,646 crore in FY 2022 from Rs 690 crore in FY 2021.

"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 versus 84 per cent the previous year, on account of improved cost optimization, process automation and a favorable product mix," the company said a statement.

PhonePe's marketing investments grew to Rs 866 crore in FY 2022 from Rs 535 crore last year.

"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 Rs 162 crore in FY21-22, on account of rapid hiring to build future product lines (Insurance, Wealth Services and others)," the statement added.