Phi Commerce Revenue Doubles While Losses Triple Amid Expansion Efforts

Phi Commerce, a provider of SaaS-based omnichannel payment solutions, has reported a significant revenue increase for the fiscal year ending March 2024. Operating revenue jumped to Rs 81.2 crore from Rs 34.7 crore in FY23. Despite this growth, the company's losses widened considerably as expansion costs mounted.

The digital payments provider saw commission income from GMV settlements, with merchants contributing Rs 72.3 crore, representing 90% of its operating revenue. Technology infrastructure and value-added services for payment aggregation generated the remaining revenue. Interest from fixed deposits and non-current investments added Rs 3.4 crore, bringing total revenue to Rs 84.5 crore.

Expenses surged 137% to Rs 116.6 crore, outpacing revenue growth and driving the net loss up by 207% to Rs 28.9 crore. Payment processing charges remained the dominant expense, accounting for 60% of total costs and increasing 2.6 times to Rs 70.5 crore. Employee benefit expenses also rose sharply by 109% to Rs 27.8 crore.

The company, which offers the PayPhi platform for simplifying digital transactions across online, in-store, and doorstep channels, spent Rs 1.44 to earn each rupee of revenue in FY24. Financial metrics reflect these challenges, with a negative ROCE of -40.18% and an EBITDA margin of -35.11%.

Phi Commerce maintained Rs 64.6 crore in cash and bank balances as part of its Rs 107.7 crore in total current assets at fiscal year-end. The omnichannel payment processor has secured $14 million in funding, including a $10 million Series A round led by BEENEXT with participation from Opus Ventures, which remains the most significant external stakeholder.