Mumbai, September 23: PhonePe showed remarkable growth in FY25 with a 40% year-on-year revenue increase to INR 7,114.9 crore, along with narrowed losses to INR 1,736 crore ahead of its IPO date announcement. The Walmart-owned fintech giant posted strong growth due to its widely popular payment services and contributions from other businesses. PhonePe also operates businesses like insurance, which contributed INR 557.6 crore for the financial year ended March 2025.

PhonePe’s payment services showed a 30% increase, while the insurance business posted INR 181 crore in revenue compared to last year. PhonePe’s business model relies on transaction processing fees from consumers, along with set-up and subscription charges for its Point of Sale (POS) devices for merchants. Newer businesses such as stockbroking, mutual fund distribution, and its quick-delivery app Pincode added INR 57.3 crore to revenue, up from INR 22.3 crore a year earlier. Zoho Co-Founder Sridhar Vembu Expresses Gratitude To Minister Ashwini Vaishnaw Shift to Homegrown Platform, Says ‘We Will Make You Proud and Make Our Nation Proud’

PhonePe Strong Financial Performance in FY25

The growth of PhonePe wasn’t just at the top line but across the company. Its net loss narrowed to INR 1,735.6 crore from INR 1,996 crore the previous year. More importantly, adjusted profit after tax (PAT), excluding ESOP costs, jumped 220% to INR 630 crore from INR 197 crore in FY24. Adjusted EBITDA more than doubled to INR 1,477 crore. For the first time, PhonePe also turned free cash flow positive, generating INR 1,202 crore from operations in FY25. Tech Layoffs in 2025 Affect Nearly 90,000 Employees From 204 Companies; Oracle, Salesforce, xAI, Zupee and Others Join This Month.

Additionally, PhonePe further strengthened its dominance in UPI with a 46% market share by transaction volume in August 2025. PhonePe beat Google Pay, which held only a 35% market share in the same month. With fresh approval as a payment aggregator from the Reserve Bank of India, the company is now set to expand beyond UPI into payment gateway services, targeting small and medium businesses, as per a report by Financial Express.

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