Synopsis
In the fiscal year ending March 2024, Phi Commerce's losses increased to Rs 28.9 crore, up from Rs 9.4 crore in FY23. This rise is attributed to significant operational costs and expansion efforts, with total expenses soaring by 137% to Rs 116.6 crore.Key Takeaways
- Losses tripled to Rs 28.9 crore in FY24.
- Total expenses surged 137% to Rs 116.6 crore.
- Payment processing costs rose 2.6 times.
- Operating revenue increased to Rs 81.2 crore.
- Company raised $14 million in funding.
Mumbai, March 7 (NationPress) Phi Commerce, a SaaS-driven omnichannel payment solutions provider, experienced a significant increase in losses, tripling to Rs 28.9 crore for the fiscal year ending March 2024 (FY24) compared to Rs 9.4 crore in the preceding fiscal year (FY23).
The surge in losses is primarily attributed to the company’s expansion initiatives and escalating operational costs.
Total expenses for the company skyrocketed by 137 percent to Rs 116.6 crore in FY24, up from Rs 49.2 crore the previous year.
The largest expense category was payment processing charges, which increased 2.6 times to Rs 70.5 crore, representing 60 percent of the overall expenses.
Employee benefits also saw a substantial rise, increasing by 109 percent year-on-year (YoY) to Rs 27.8 crore. Additional costs, such as legal fees, platform support charges, and share-based compensation for consultants, contributed to the overall financial strain.
As a result of this sharp rise in expenditures, Phi Commerce's losses expanded significantly, with the company spending Rs 1.44 to generate each Rs 1 in FY24.
The return on capital employed (ROCE) was recorded at (-) 40.18 percent, while the EBITDA margin reflected (-) 35.11 percent.
Notably, the Pune-based firm saw a substantial increase in operating revenue, reaching Rs 81.2 crore in FY24, a rise from Rs 34.7 crore in FY23, as indicated by its financial reports.
The company primarily generates revenue from commissions on GMV settlements with merchants, contributing Rs 72.3 crore, nearly 90 percent of its total operating income for FY24.
Additionally, the company earned from technology infrastructure and value-added services for payment aggregation.
Furthermore, it accrued Rs 3.4 crore in interest income from fixed deposits and non-current investments.
As of March 2024, Phi Commerce had current assets totaling Rs 107.7 crore, including Rs 64.6 crore in cash and bank balances.
The company has successfully raised $14 million in funding to date, which includes a $10 million Series A round led by BEENEXT, with participation from Opus Ventures.
Opus Ventures stands as its largest external stakeholder, followed by BEENEXT, as per data from TheKredible.
Phi Commerce operates within the digital payments industry, offering its flagship product PayPhi, which delivers a unified omnichannel payments platform for businesses, banks, and networks.
