PhonePe Reaches 600 Million Users, Gains 100 Million in Last 16 Months

Fintech giant PhonePe has officially reached 600 million registered users, marking a significant milestone as the company prepares for a potential initial public offering (IPO). Over the past 16 months, the company successfully onboarded more than 100 million new users, demonstrating its growing influence in India's digital payments ecosystem. This achievement follows its previous milestone of 500 million users, showcasing rapid adoption and expansion.

Expanding Merchant Network and Transaction Volume

PhonePe's user growth is complemented by an expanding merchant base, now exceeding 40 million businesses across the country. The company processes over 330 million transactions daily, reinforcing its dominance in India's digital payments sector. With an Annualized Total Payment Value (TPV) surpassing Rs 150 trillion, PhonePe continues to solidify its position as a key player in the financial technology space.

Leadership Statement on Growth and Financial Inclusion

Sameer Nigam, Co-founder and CEO of PhonePe, expressed his excitement over the company’s latest achievement: “Reaching 60 crore registered users is a proud moment for all of us at PhonePe. Every milestone we achieve brings us a step closer to realizing our vision of building a truly inclusive financial ecosystem.”

Market Leadership in UPI Payments

PhonePe remains the leading entity in India's Unified Payments Interface (UPI) landscape, securing over 47% market share in real-time digital transactions. Data from the National Payments Corporation of India (NPCI) highlights PhonePe’s stronghold in the country's rapidly expanding digital payments infrastructure.

IPO Preparations and Strategic Expansion

Last month, PhonePe announced its preparations for a potential IPO in India. This move comes more than two years after the company reverse-flipped from Singapore to India, underscoring its commitment to the Indian financial ecosystem. The domicile shift required PhonePe to pay approximately $1 billion in capital gains taxes to the Indian government, further cementing its local presence.

Revenue Growth and Financial Performance

PhonePe’s financial performance has seen remarkable improvement. In FY24, its consolidated revenue from operations increased by 73.8%, reaching Rs 5,064 crore, compared to Rs 2,914 crore in FY23. The company also managed to narrow its net loss, reducing it to Rs 1,996 crore in FY24 from Rs 2,795 crore in the previous fiscal year. These numbers highlight PhonePe’s strong growth trajectory and improving financial health.

Diverse Business Portfolio and Future Prospects

PhonePe is not just a digital payments platform but has diversified its portfolio across multiple sectors. The company distributes various financial products, including insurance, lending, and wealth management solutions. Additionally, it operates consumer tech ventures such as:

• Pincode: A hyperlocal e-commerce platform.

• Indus AppStore: A localized app store tailored for India's Android ecosystem.

By expanding its service offerings, PhonePe is positioning itself as a holistic financial technology provider, catering to both consumers and businesses.

Conclusion: A Fintech Powerhouse on the Rise

PhonePe’s journey from a payments platform to a full-fledged fintech powerhouse reflects its commitment to financial inclusion and digital transformation. With a growing user base, strategic IPO planning, and continuous innovation, the company is poised to redefine India’s fintech landscape. As it moves towards a public listing, PhonePe’s impact on digital payments and financial services is expected to grow even further.