Flipkart’s PhonePe posts steep rise in FY17 revenue

Flipkart’s PhonePe posts steep rise in FY17 revenue
Photo Credit: Reuters
6 Feb, 2018

PhonePe Pvt. Ltd, the payments app owned by online retailer Flipkart, has recorded sharp growth in net sales for the financial year ended March 2017, according to filings made with the Registrar of Companies.

The unified payments interface-based company registered net sales of Rs 3.03 crore for 2016-17 compared with Rs 19 lakh the year before, the filings show.

The company hasn’t filed its full financial report for FY17, so its profit or loss couldn’t be ascertained.
The company had made a loss of Rs 4.1 crore in 2015-16 and a loss of Rs 28 lakh in 2014-15.

Email queries and text messages seeking comment on the financials to Flipkart and PhonePe spokespersons didn’t elicit a response till the time of publishing this report.

Flipkart Payments Pvt. Ltd, a subsidiary of the Singapore-based umbrella entity Flipkart Ltd, has a controlling stake in PhonePe.

Delhi-based PhonePe was formerly known as FX Mart Pvt. Ltd. It has another associated entity, PhonePe Internet Pvt. Ltd, which is based out of Bangalore. FX Mart was founded by Amit Narang and acquired by Flipkart in 2015.  PhonePe Internet was founded by former Flipkart employees Sameer Nigam and Rahul Chari, and bought by the e-commerce firm in 2016.

A PhonePe spokesperson clarified that PhonePe Pvt. Ltd is the current operating entity.

In October last year, PhonePe Pvt. Ltd received Rs 254.43 crore($38.7 million) in a new round of funding from Singapore-based group firm Flipkart Payments Pvt. Ltd.

Previous filings show that PhonePe had received Rs 83.68 crore in October 2016 by allocating 4.18 million equity shares at Rs 200 apiece. In April 2016, it had received Rs 102.94 crore against 5.42 million shares at a subscription price of Rs 190 apiece.

Another Flipkart group company that reported a steep rise in revenue for 2016-17 is Myntra Designs Pvt. Ltd. The fashion e-tailer’s revenue climbed 87% in the year through March 2017 but its net worth eroded as debt levels soared.

The company posted revenue of Rs 2,000 crore ($314 million) in 2016-17, a filing with the Registrar of Companies (RoC) showed. Myntra had reported total revenue of Rs 1,069 crore in 2015-16, up 38% from Rs 774 crore in the previous year. It had posted a consolidated net loss of Rs 823 crore in 2015-16, according to the regulatory filings.

Last week, The Hindu BusinessLine reported, citing business intelligence platform Paper.vc, that Singapore-based holding company Flipkart Ltd posted a 29% rise revenue for 2016-17 to Rs 19,854 crore. It posted a net loss of Rs 8,771.4 crore, the report said.