Flipkart-owned PhonePe raised Rs 742 crore from its parent company after passing a resolution to issue 3,71,753 shares priced at Rs 19,958 each.
This is the second major capital infusion for PhonePe from Flipkart in 2022, YourStory reported.
Prior to this, the fintech company raised $297 million through the issue of 2.5 million shares at an issue price of Rs 8,901 in March 2022.
In FY22, the fintech registered Rs 1,690 crore revenues, which is a massive jump from Rs 640 crore in FY21.
However, it also witnessed a surge in its net employee costs and marketing expenses. In FY21, the company had reported Rs 725.03 crore as employee costs, whereas in FY22, this surged to Rs 1638 crore. Similarly, marketing expenses rose to Rs 670 crore compared to Rs 535 crore.
The surge in employee costs led to an increase in the company’s net losses. In this financial year, PhonePe witnessed a net loss of Rs 1,775.78 crore compared to Rs 1,730.57 crore last year.
PhonePe was founded by Sameer Nigam, Rahul Chari and Burzin Engineer in 2015. In 2016, it was acquired by Indian e-commerce giant Flipkart. In 2020, the company raised $700 million from some of the existing Flipkart investors Tiger Global and Walmart.