IPO-bound Indian fintech giant PhonePe has reported a sharp rise in revenue for the year ended March 31, 2025 (FY25), even as losses persisted.
Revenue from operations climbed 40.5% to Rs 7,114.9 crore in FY25, compared with Rs 5,064.1 crore a year earlier. Including other income, total income rose 33.4% year-on-year to Rs 7,631.4 crore.
Net losses narrowed 13.5% to Rs 1,727.4 crore from Rs 1,996.2 crore in FY24.
Expenses remained heavy at Rs 9,394.1 crore, up 21.1% from the previous year. Employee benefits accounted for the largest share at Rs 4,096.7 crore, followed by payment processing charges at Rs 1,688.2 crore and depreciation costs of Rs 1,360.3 crore. Marketing spends, however, were reined in, dropping 21.6% to Rs 541.7 crore.
The results come as the company edges toward a long-awaited listing. Its performance contrasts sharply with that of rival Paytm, which has been grappling with a regulatory clampdown.
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Paytm’s revenue from operations in FY25 fell 31% to Rs 6,900 crore from Rs 9,978 crore a year earlier. But in a turnaround, One 97 Communications, Paytm’s parent, reported a consolidated net profit of Rs 122.5 crore for the June 2025 quarter, against a loss of Rs 838.9 crore a year ago.
PhonePe, by contrast, remains loss-making but has kept narrowing its deficit while building scale across payments and financial services. With its IPO on the horizon, the fintech unicorn is still spending heavily on technology and customer support, where costs jumped 67.1% in FY25.
The company’s operations span payments aggregation and Bharat BillPay, alongside newer verticals in insurance broking, mutual fund distribution, stock broking, lending, and a hyperlocal marketplace. Its Indus
Appstore, set up as an Indian alternative to Google Play, underwent restructuring in 2024 with both Indian and Singapore entities under the group. Meanwhile, its wealth management arms Wealth Technology & Services and Quantech Capital were merged into PhonePe Wealth Broking Pvt Ltd.
Edited by Affirunisa Kankudti
