Phi Commerce has delivered one of its strongest financial performances to date. The fintech startup, known for powering digital payments for businesses across India, closed FY25 with revenue crossing the ₹100 crore mark. This growth comes along with a sharp reduction in losses, showing that the company is moving steadily toward financial stability. For a technology company operating in a highly competitive payments market, this combination of growth and cost discipline marks an important milestone.
Strong Revenue Performance in FY25
Phi Commerce reported operating revenue of ₹103.9 crore in FY25. This is a significant jump from ₹81.3 crore in FY24. The rise reflects the increasing number of merchants and enterprises choosing Phi Commerce to handle their payment collections. The company benefits every time a customer pays a business using one of its supported channels, whether online, in-store or through mobile-based payment systems. Its revenue model is built around commissions earned on the total transaction value processed for merchants, and this continues to remain its strongest income driver. Along with its main revenue stream, the company also earned from technology support services and interest income, raising its total earnings for the year to over ₹107 crore.
Expenses Rise but Efficiency Improves
Phi Commerce spent ₹133 crore in FY25, which is higher compared to ₹117 crore in the previous year. A major part of the spending came from payment processing charges. These costs remain the largest expense for the company, forming more than half of its total outflow. Employee costs, platform maintenance, consulting services and administrative expenses also contributed to the overall spending. Despite the rise, the company managed to operate more efficiently this year. It spent ₹1.28 to earn one rupee of revenue, which is an improvement from the previous year. This means the company is using its resources more wisely and moving toward healthier unit economics.
Losses Fall Sharply as Financial Health Improves
One of the biggest highlights of FY25 is the steep drop in losses. Phi Commerce reduced its net loss by 45 percent. Losses came down from ₹29.2 crore in FY24 to ₹16.1 crore in FY25. This decline is important because it shows the company is controlling costs while expanding revenue. The improvements in efficiency, better spending control and steady growth across merchant services all contributed to this reduction. Although profitability is still some distance away, the current trend shows a clear path toward financial recovery. The company also ended the year with a strong cash balance of ₹26 crore, giving it a comfortable cushion to invest in expansion and operations.
Future Outlook for Phi Commerce
With digital payments growing rapidly across India, Phi Commerce is well positioned to continue its upward journey. The company is expected to focus on expanding its merchant network and deepening its presence in more cities. Strengthening its payment technology platform and enhancing service quality will likely remain key priorities. To move closer to profitability, Phi Commerce will aim to further improve unit economics and reduce operational overheads. If it maintains the same pace of revenue growth and cost discipline, the company could reach a stable and profitable phase sooner than expected. FY25 has already set the tone, and the coming years could bring even stronger performance.