The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    PhonePe’s FY19 loss at Rs 1,907 crore

    Synopsis

    A key reason for the wider loss was higher employee cost and marketing spending that more than doubled.

    PhonePe is locked in a bitter battle for market share with Paytm and Google Pay, which are doubling down on their investments in the space of Unified Payments Interface (UPI).
    BENGALURU: The digital payments space continues to see immense cash burn as another major payments company, PhonePe, has reported a loss of Rs 1,907 crore for fiscal 2019, compared with Rs 79 1crore the year before. Revenue from operations grew 330% to Rs 184 crore from Rs 42.8 crore in fiscal 2018.

    A key reason for the wider loss was higher employee cost and marketing spending that more than doubled. Advertising expenses rose to Rs 1,296 crore from Rs 602 crore in 2018. Employee cost increased to Rs 531 crore from Rs 130 crore.

    Paytm recorded a net loss of Rs 3,959 crore for the year through March 2019, compared with a Rs 1,490 crore loss reported the previous year. Amazon Pay, another digital payments player, too, has reported a loss of Rs 1,160.8 crore for 2019.

    phonepe-graphic2

    PhonePe, which is owned by e-commerce company Flipkart, is in the process of raising up to $1 billion. It has already received the clearance from the Flipkart board to raise capital from outside the group. Until now, PhonePe was running on the $500-million commitment it had received from Flipkart in 2017.

    PhonePe is locked in a bitter battle for market share with Paytm and Google Pay, which are doubling down on their investments in the space of Unified Payments Interface (UPI). As per latest numbers shared by the National Payments Corporation of India, UPI has recorded one billion transactions in October.
    Register for ETRise Top MSMEs Ranking Digital Felicitation Ceremony. Visit www.etrise.com/topmsmes

    Also Read

    3 Comments on this Story

    Googie Pay398 days ago
    customer care (O8969I5I962)sbi
    Googie Pay398 days ago
    customer caregg (O8969I5I962)
    Googie Pay398 days ago
    customer care (O8969I5I962)
    The Economic Times