Digital payments firm PhonePe, backed by Walmart, posted a solid improvement in FY25, with revenue growing about 40% year-on-year to reach ₹7,115 crore. At the same time, the company narrowed its net loss by over 13%, bringing it down to around ₹1,727.4 crore, from ₹1,996.1 crore in FY24.
Revenue Growth & Business Drivers
The 40% growth in revenue reflects rising adoption of financial services offered via PhonePe’s platform. As usage of digital payments, UPI, wallet and allied services expands, PhonePe appears to be converting scale into top-line gains.
Loss Reduction But Still in the Red
While the net loss has narrowed significantly (13.4-13.9%), PhonePe remains unprofitable in FY25. The improved financials suggest the company is managing costs better, possibly optimizing expenses and leveraging scale.
Free Cash Flow & IPO Readiness
According to reports, PhonePe pulled off a milestone by becoming free cash flow positive, generating around ₹1,202 crore in cash from operations. This is a key signal especially considering its preparations for a public listing.
What This Means
- PhonePe is moving closer to financial stability, showing signs of control over expenses and better operating leverage.
- The revenue jump, especially in payments and financial-services diffusion, shows strong tailwinds for fintech in India.
- Remaining challenges include continuing to trim losses, diversifying profitable revenue streams beyond payments, and sustaining operational efficiency.
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