PhonePe reduces customer service team, cashbacks to cut losses

Walmart-backed fintech major PhonePe, which narrowed its net loss by nearly 30% in FY24, has significantly reduced its customer service team and scaled back cashbacks and incentives offered to users to trim expenses, according to its annual report.

Over the last five fiscal years, PhonePe downsized its customer service team by 60%, bringing it down to just over 400 agents from nearly 1,100. This was achieved through the use of AI-driven chatbots, which now resolve over 90% of customer service issues. “This significant cost saving was achieved without compromising customer satisfaction in any way,” the company stated in its report.