Fintech startup PhonePe swings to adjusted profit in FY24

Bengaluru: Fintech startup PhonePe clocked a profit after tax of ₹197 crores, excluding ESOP costs, in the financial year 2024, compared to a loss of ₹738 crore a year earlier.

The company’s standalone payments business also reported an adjusted PAT of ₹710 crore for FY24 against a loss of ₹194 crore a year earlier, PhonePe said in a statement on Monday.

If ESOPs are included, PhonePe reported a loss. ESOPs or employee stock options, used as a tool to reward or retain employees, can have a substantial cost and tax burden for the company and employees. PhonePe didn’t offer details of its ESOPs costs.