Business Segments
Business Segment Overview
PhonePe operates four distinct business segments: (1) PhonePe Platform — the core payments and merchant business generating 83% of revenue; (2) Financial Services — insurance distribution (₹22.9B Lifetime to Date premium), lending (₹142.7B disbursals LTD), and mutual fund distribution; (3) Share.Market — stock and F&O broking platform launched in 2024; and (4) Indus Appstore — India's alternative Android app store with 300M+ downloads. Each segment leverages the 657.6M user base and transaction data moat to cross-sell and expand wallet share.
Platform Scale (as of Sep 2025)
PhonePe Platform serves 657.56M LTD Registered Users and 47.19M LTD Registered Merchants, covering 98.61% of India's pin codes. The platform processed 53.40B Customer Transactions with ₹73.70T TPV in H1 FY26.
Consumer Payments
Merchant Payments
Market Leadership Across Payment Use Cases
| Payment Use Case | Market Share | Period | Metric |
|---|---|---|---|
| UPI Customer-Initiated Transactions | 49.15% | Sep 2025 | TPV |
| UPI P2P Transactions | 49% | H1 FY26 | Volume |
| UPI Autopay (Recurring) | 57% | H1 FY26 | Volume |
| Bharat Connect (BBPS) | 36% | H1 FY26 | Volume |
| Online Recharges | 46% | FY25 | TPV (₹1.68T market) |
| RuPay Credit Card on UPI | 43% | FY25 | TPV (₹1.37T market) |
| UPI Lite Transactions | 40% | FY25 | Volume |
Customer Engagement
- 99.23% 30-day rolling retention rate
- 62.58 avg transactions in 30-day window
- 44.82% DAC/MAC ratio (up from 36.74%)
- 41.43% habitual users (>30 TPC/month)
Merchant Engagement
- 60.77% DAM/MAM ratio (up from 44.18%)
- 379.16 transactions per active merchant/month
- 25,657 feet-on-street sales team
- 96.96% pin code coverage
Analyst View
Insurance Premium Lifetime to Date: ₹22.9B (Sep 2025).
Mutual Fund AUA: ₹15.7B via WealthDesk.
Two-wheeler insurance: 20-25% digital market share.
Lending: Partnership model with 15+ lenders.
| Insurance Category | GWP (FY25) | Market Position | Growth |
|---|---|---|---|
| Motor Insurance (Two-Wheeler) | ₹8-10B | 20-25% digital share | +35% |
| Motor Insurance (Four-Wheeler) | ₹6-8B | 12-15% digital share | +28% |
| Health Insurance | ₹5-7B | Growing | +45% |
| Life Insurance | ₹3-5B | Emerging | +60% |
| Other (Travel, Device) | ₹2-3B | Diversified | +40% |
New Growth Vector
Share.Market is PhonePe's entry into the ₹1.06T broking revenue pool (CY30E). Launched in 2024, it offers commission-free equity delivery and competitive F&O pricing, targeting the 618M user base for conversion.
Product Features
- Zero brokerage on equity delivery
- Low F&O fees vs competition
- Integrated UPI for instant funding
- Educational content for new investors
Market Opportunity
- ₹0.35T → ₹1.06T broking revenue pool (CY30)
- +20% CAGR industry growth
- ~150M demat accounts in India
- ~5% population penetration
Strategic Call Option
Indus Appstore is India's largest alternative Android app store with 300M+ downloads. It offers developers lower commissions (15-20% vs Google's 30%) and provides PhonePe an entry into the $45B mobile app distribution TAM.
| Feature | Indus Appstore | Google Play Store |
|---|---|---|
| Developer Commission | 15-20% | 30% (15% for small devs) |
| Local Language Support | 12 Indian languages | Limited |
| UPI Integration | Native PhonePe | Google Pay |
| Pre-installed (OEM deals) | Yes (select OEMs) | Default on Android |
| App Discovery | Curated for India | Global algorithms |
Business Segment Summary
PhonePe Platform
UPI payments, merchant acquiring, bill payments.
Financial Services
Insurance, lending, mutual funds.
Share.Market
Stock broking platform.
Indus Appstore
Alternative Android app store.