Key Points
Losses escalate to Rs 28.9 crore amid aggressive expansion
Operating revenue jumps to Rs 81.2 crore
Payment processing charges rise 2.6 times
The primary reason behind the surging losses was the company's expansion efforts and rising operational costs.
The company's total expenses soared by 137 per cent to Rs 116.6 crore in FY24 from Rs 49.2 crore in the previous year.
Payment processing charges were the biggest cost, rising 2.6 times to Rs 70.5 crore and accounting for 60 per cent of total expenses.
Employee benefit costs also jumped by 109 per cent year-on-year (YoY) to Rs 27.8 crore. Other expenses, including legal fees, platform support charges, and share-based compensation for consultants, further added to the rising costs.
Due to the sharp increase in spending, Phi Commerce's losses widened substantially. The company spent Rs 1.44 to earn every Rs 1 in FY24.
Its return on capital employed (ROCE) stood at (-) 40.18 per cent, while the EBITDA margin was (-) 35.11 per cent.
However, the Pune-based firm recorded a significant jump in operating revenue, reaching Rs 81.2 crore in FY24, up from Rs 34.7 crore in FY23, according to its financials.
The company primarily earns revenue from commissions on GMV settlements with merchants, which contributed Rs 72.3 crore, or nearly 90 per cent of its total operating income in FY24.
It also made money from technology infrastructure and value-added services for payment aggregation.
Additionally, the firm generated Rs 3.4 crore in interest income from fixed deposits and non-current investments.
As of March 2024, Phi Commerce had total current assets worth Rs 107.7 crore, with Rs 64.6 crore held in cash and bank balances.
The company has raised $14 million in funding so far, including a $10 million Series A round led by BEENEXT, with participation from Opus Ventures.
Opus Ventures remains its largest external stakeholder, followed by BEENEXT, according to data from TheKredible.
Phi Commerce operates in the digital payments space with its flagship product, PayPhi, which provides businesses, banks, and networks with a unified omnichannel payments platform.
