PhonePe’s FY19 loss at Rs 1,907 crore
A key reason for the wider loss was higher employee cost and marketing spending that more than doubled.
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, 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.