Walmart-owned digital payment startup PhonePe’s losses have gone up by more than 2X to around Rs 1907.4 crore during the financial year ended March 2019 (FY19) on account of higher expenses, according to its latest filings with the registrar of companies (RoC). PhonePe’s losses increased from around Rs 791 crore reported in the previous financial year (FY18).
The startup’s losses have been rising gradually every year with a 6X increase in losses reported in FY18, and a mammoth 31X rise in losses reported in FY17. PhonePe, which was recently valued at $7 billion by Morgan Stanley in September, grew its total revenue by 5X to around Rs 245.8 crore during FY19, compared to Rs 49 crore revenues reported in the previous financial year. The revenue growth in FY19 was slightly higher compared to a 3X growth in revenues reported in FY18.
The Bengaluru-based startup which competes with other products such as Google Pay, Paytm, BharatPe, and others also reported a 3X rise in expenses during FY19. PhonePe’s total expensed stood at Rs 2153.2 crore in FY19, compared to expenses of Rs 840.1 crore reported in FY18.
PhonePe’s expenses have been rising steadily in the competitive payments segment, which is also seeing reports of consolidation. Expenses increased by around 6X in FY18, and by around 30X in FY17.
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