PhonePe, a digital payments platform, based out of Bengaluru, has reported a down fall of INR 1,907 crore for FY19, against INR 791 crore in 2018, reported ET.
Besides the losses, PhonePe’s revenue grew 330 per cent to INR 184 crore against INR 42.8 crore in 2018.
The company PhonePe registered the reason for heavy losses as higher employee cost and marketing spending that more than doubled in 2019.
Advertising expenses rose to INR 1,296 crore from INR 602 crore in 2018. Employee cost, on the other hand, surged to INR 531 crore from INR 130 crore.
PhonePe which was acquired by Flipkart in 2016, was founded by ex-Flipkart executives Sameer Nigam, Rahul Chari and Burzin Engineer. Since then Flipkart has invested about $500 million in PhonePe.
It is a financial technology company, headquartered in Bangalore, India. It provides an online payment system based on Unified Payments Interface (UPI), which is a new process in electronic funds transfer launched by National Payments Corporation of India.
Furthermore, PhonePe is in the process of raising up to $1 billion. It has already received the clearance from the Flipkart board to raise capital from outside the group.
Thus, there are several digital transaction platforms in India that compete with the likes of PhonePe- Paytm, Amazon Pay, Google Pay, Yono, Mobikwik, etc.