PhonePe Swings to Profit in FY24 Amid Strong Revenue Growth

Fintech startup PhonePe achieved an adjusted profit of ₹197 crore in FY24, excluding ESOP costs, reversing a loss of ₹738 crore from the previous year. The standalone payments business also reported an adjusted PAT of ₹710 crore, compared to a loss of ₹194 crore in FY23. Including ESOP costs, the company posted a loss, but no specific details were provided.

PhonePe’s revenues surged 74% to ₹5,064 crore, driven by cross-selling a diverse product portfolio and cost efficiencies. CFO Adarsh Nahata highlighted the company’s focus on sustainable growth, revenue diversification, and improving profitability as key factors in its success. CEO Sameer Nigam emphasized disciplined financial management as a driver for continued profitability in the payments business. The company also launched a ‘credit line on UPI,’ allowing users to pay merchants via credit through PhonePe’s Payment Gateway.

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Yubi Secures ₹250 Crore Infusion from Founder Gaurav Kumar

Fintech unicorn Yubi, formerly known as CredAvenue, has announced a fresh capital infusion of ₹250 crore from its founder and CEO, Gaurav Kumar. Kumar, who also co-founded Vivriti Capital and Vivriti Asset Management, has been instrumental in expanding Yubi into a formidable group that includes brands like Aspero, Spocto, Corpository, and Finfort. This strategic investment underscores Kumar’s commitment to driving Yubi’s growth and scaling its financial services offerings.

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Navadhan Expands to Four New States, Taps into Rural Market Growth

Rural fintech startup Navadhan is scaling up its operations by expanding into four additional states, supported by its efficient lending model, which has attracted over 25 lenders, including MSME-focused NBFCs like Vivriti and UGro. With credit lines exceeding ₹1,000 crore, Navadhan is targeting the largely untapped 80% of the rural market, a segment experiencing faster growth than urban areas. The fintech firm is leveraging the rise in rural internet users to drive new wealth creation and position itself as a key player in the evolving rural economy

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FDI in Realty, Fintech, and Semiconductors Expected to Triple in FY25: FinMin Sources

Foreign direct investment (FDI) in India’s real estate, fintech, and semiconductor sectors is projected to triple in FY25, according to sources from the Finance Ministry. This anticipated surge is likely to be driven by increased collaboration with Singapore, a leading investor in these sectors. Singapore’s interest in India’s burgeoning technology landscape, particularly in AI and semiconductors, is expected to play a pivotal role in this growth. The increase in FDI aligns with India’s strategic goals to develop a robust semiconductor ecosystem and expand its fintech and real estate markets.

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Jio Financial Services Receives Approval to Boost Foreign Investment Cap to 49%

Jio Financial Services, the non-banking financial arm of Reliance Industries, has received approval from the Department of Economic Affairs to increase its foreign investment cap to 49% of its total equity on a fully diluted basis. This move, following shareholder approval, is expected to attract greater participation from Foreign Portfolio Investors (FPIs) and other global investors. The approval comes as Jio Financial continues to expand its footprint in the financial services sector, including digital banking services and plans to enter the home loans market.

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Ex-RBI Deputy Governor Skeptical About CBDC Utility Amid UPI’s Dominance

SS Mundra, former Deputy Governor of the Reserve Bank of India, has expressed skepticism about the utility of India’s Central Bank Digital Currency (CBDC), the E-Rupee, given the widespread adoption of UPI. Speaking at a recent event, Mundra pointed out that while it’s beneficial to have a CBDC, UPI’s existing traction diminishes the need for it. He emphasized the importance of banks reimagining their business models to compete with fintech startups, which are leading in digital innovation. Despite the push for CBDC adoption, concerns over data privacy and cybersecurity remain key challenges.

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