PhonePe, the Walmart-backed fintech giant, has announced a significant milestone by turning profitable for the fiscal year 2024, excluding costs related to employee stock options (ESOPs). The company reported a profit after tax (PAT) of ₹197 crore, excluding ESOP expenses, marking a dramatic turnaround from a loss of ₹738 crore in FY23.

In a statement released on Monday, PhonePe highlighted its revenue surge to ₹5,064 crore in FY24, a 74% increase from ₹2,914 crore in the previous fiscal year. This substantial revenue growth reflects the company’s successful expansion and operational efficiencies. The standalone payments business alone posted an adjusted PAT of ₹710 crore for FY24, a significant improvement from the ₹194 crore loss recorded in FY23.

The fintech firm attributes this financial turnaround to its strategic focus on automation and cost efficiencies, which have driven significant operating leverage. “The achievement of topline growth alongside sustainable bottomline improvement is a testament to PhonePe’s commitment to operational excellence and cost management,” the company stated.

Valued at $12 billion, PhonePe has become a leader in the Unified Payments Interface (UPI) market, commanding nearly 50% of the market share and processing the highest volume of UPI transactions among competing apps. The company has been actively diversifying its business beyond payments to include sectors such as insurance, merchant lending, and stock broking. PhonePe launched its stock broking app, Share.Market, last year as part of this diversification strategy.

Founder and CEO Sameer Nigam emphasized the importance of disciplined financial management in achieving and sustaining profitability. “We believe that our focus on financial discipline, coupled with optimized investments and capital allocation, will continue to support our growth trajectory and diversified revenue model,” he said.

PhonePe’s strategic shift to domicile in India from Singapore in 2022 and its separation from Flipkart have positioned it for further expansion and public listing in the coming years. The company’s emphasis on customer-centric innovation and financial prudence is expected to provide a robust foundation for its future success.