PhonePe announced changes in the leadership for lending and insurance verticals
By siliconindia | Wednesday, 08 November 2023, 06:19:21 PM IST
PhonePe, the financial services firm backed by Walmart, has recently announced a strategic reorganization. As part of this move, the roles of the top management have been reshuffled. Hemant Gala, who has been overseeing payments, banking, and financial services, will now take on the role of CEO at PhonePe’s lending business. Similarly, Vishal Gupta, who was earlier the product head, has been promoted to the position of CEO for PhonePe’s Insurance business. Both of these senior executives, who were former leaders at Flipkart, have been instrumental to PhonePe’s journey and have been with the company for the past seven years. They have played pivotal roles in product development, design, risk management, and customer experience, which has contributed to the growth of the payments and merchants business.
PhonePe's Founder and CEO Sameer Nigam has announced a reorganization to redesign the org and promote key PhonePe executives to larger roles within the group. In his statement, Nigam congratulated the executives and expressed confidence in their abilities to help build multiple new businesses for PhonePe Group. This reorganization marks PhonePe's expansion into new business areas such as e-commerce, stockbroking, online payment gateway, account aggregator services, a loan service for merchants in partnership with NBFCs and banks, and a Point of Sale (PoS) device.
PhonePe has appointed Vivek Lohcheb, its Vice President of Offline Business, as the CEO of Pincode, its new app. Lohcheb's six-year tenure with the company makes him an ideal candidate to lead this new initiative. In another move, Ujjwal Jain has been promoted to CEO of ShareMarket and will oversee the Wealth and Broking division. Sameer Nigam, PhonePe's CEO, praised the contributions of these executives in driving the company's growth and emphasized that in their new roles, they would have complete responsibility for managing their businesses, shaping strategies, and driving growth in their respective verticals.
PhonePe, a fintech decacorn, a 77% increase in its consolidated revenue, reaching Rs 2,914 crore in FY23. As of March, it holds a 50.54% share of the UPI market in terms of total payments value. PhonePe India Pvt Ltd, which is responsible for its payments business, recorded an operating loss of Rs 1,755 crore in FY23, compared to Rs 1,612 crore the previous year. However, the payment subsidiary achieved EBITDA positivity on an adjusted basis, excluding the ESOP cost, a metric used by new-age firms.
PhonePe, a UPI payments app, has achieved a significant milestone by surpassing 50 million registered users since its launch in August 2016. Sameer Nigam, PhonePe's CEO, expressed his optimism for the future and said, "It feels almost surreal, yet we have achieved only 50% of our vision of bringing digital payments to 100 crore Indians." With one in three Indians now using the app, PhonePe has become the first Indian internet company to attain this scale globally. This achievement highlights PhonePe's rapid growth and success in bringing digital payments to millions of people in India.
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