PhonePe's ad spends dropped 47% in FY21

PhonePe's advertising promotional expenses for the fiscal ended 31st March 2021 was Rs 534.95 crore compared to Rs 1016.64 crore in the previous FY

e4m by exchange4media Staff
Published: Jun 27, 2022 8:41 AM  | 2 min read
PhonePe

Walmart-controlled Flipkart's digital payments app PhonePe's advertising promotional expenses for the fiscal ended 31st March 2021 dropped 47% to Rs 534.95 crore compared to Rs 1016.64 crore in the previous fiscal. In FY19, the company had spent Rs 1297 crore on advertising.

According to the company's financial data accessed by Tofler, total expenses rose to Rs 2456.12 crore from Rs 2202.91 crore. The company's revenue from operations jumped 11.49% to Rs 689.8 crore from Rs 371.76 crore. Total income rose 70% to Rs 725.45 crore compared to Rs 427.21 crore.

PhonePe generated revenue of Rs 685.95 crore from payments and allied services while commission from the sale of insurance came in at Rs 3.78 crore. In the previous fiscal, the company had earned Rs 371.76 crore from payments and allied services.

Revenue from processing payment transactions is based upon a fixed percentage applied to the transaction value or determinable as per terms of the agreement with customers. Commission from the sale of insurance includes the brokerage that the company earns from insurance companies on the placement of insurance policies.

The company's loss for the fiscal narrowed by 2.47% to Rs 1727.87 crore against Rs 1771.66 crore a year ago.

PhonePe is planning to raise funds through an initial public offer. The digital payment company is reportedly seeking a valuation of $ 8-10 billion.

The digital payments app claims to have over 380 million users, driving over 3 billion monthly transactions adding up to $830 billion in Annual TPV run rate. The company has also digitised close to 30 million offline merchants, covering 99% of PIN codes in the country.

Read more news about (ad news, latest advertising news India, internet advertising, ad agencies updates, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube