PhonePe Reports ₹197 Crore Profit in FY24

22 Oct 2024 , 08:14 PM

PhonePe reported a Profit After Tax (PAT) of ₹197 Crore for FY 2023-24, marking a significant turnaround from a loss of ₹1,513 Crore in FY 2018-19.

The standalone payments business posted a profit of ₹710 Crore during the same period, showcasing improved financial health due to automation and efficient financial management.

The company’s first-ever annual report, released on October 21, 2024, highlights its focus on automation, with over 90% of issue resolutions now handled by AI chatbots.

PhonePe reduced its customer service team by 60%, from 1,100 to 400 agents, leading to substantial cost savings while improving Net Promoter Scores (NPS).

Despite challenges such as the “Zero MDR” law and the COVID-19 pandemic, PhonePe concentrated on automation and unit economics, boosting its financial performance.

PhonePe expanded its services by leveraging its UPI network to offer insurance, mutual funds, and EDI-based merchant lending, increasing customer loyalty.

Investments in technology infrastructure enhanced reliability and reduced service costs, contributing to long-term operational efficiency.

In 2019, the company minimized transaction incentives, including cashbacks, while introducing nominal platform fees, a move that did not affect customer retention.

Strong financial discipline and innovation have set the foundation for PhonePe’s sustainable growth and future shareholder value.