Affirm vs PhonePe: Revenue, Profit and Business Model
Affirm had $4.3B of annual revenue in FY2026 and $1.9B of net income. PhonePe had ~$918.7M of annual revenue in FY2026 and a net loss of ~$323.9M.
Latest financial snapshot
Financial summary
Affirm
Affirm's results depend on transaction volume, credit performance, funding costs, and loan-sale markets. FY2026 revenue was $4.261 billion on $50.2 billion of GMV. Net income was $1.930 billion, but included a $1.45 billion income-tax benefit from releasing a valuation allowance on domestic deferred tax assets.
PhonePe
PhonePe's revenue from operations grew from ~$338 million (₹2,914 crore) in FY23 to ~$587 million (₹5,064 crore) in FY24 and ~$825 million (₹7,115 crore) in FY25, a CAGR of about 56% according to its DRHP. Over the same period, its loss margin improved from about -91% to -23%. FY25 net loss was ~$200 million (₹1,727 crore), and the company reported positive free cash flow that year. Growth then slowed. FY26 revenue rose 11% to about $919 million (₹7,920 crore), and consolidated net loss widened 62% to ~$324 million (₹2,792 crore), according to MCA filings reported by Moneycontrol. ESOP charges tied to the IPO and losses at subsidiaries drove much of the wider loss, and PhonePe put its normalised FY26 loss at about $160 million (₹1,377 crore). PhonePe is India's absolute dominant digital payments and financial services platform, commanding a massive private market valuation of approximately $12 billion.
Revenue and profit by year
Affirm
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $4.3B | $1.9B | 45.3% | +32.2% | Source |
| FY2025 | $3.2B | $52.2M | 1.6% | +38.8% | Source |
| FY2024 | $2.3B | -$517.8M | -22.3% | +46.3% | Source |
| FY2023 | $1.6B | -$985.3M | -62.1% | +17.7% | Source |
| FY2022 | $1.3B | -$707.4M | -52.4% | +55.0% | Source |
| FY2021 | $870.5M | -$441M | -50.7% | +70.8% | Source |
| FY2020 | $509.5M | -$112.6M | -22.1% | +92.7% | Source |
| FY2019 | $264.4M | -$120.5M | -45.6% | — | Source |
Where the revenue comes from
Affirm
- Merchant network revenue
Not separately reported as a percentage
Fees earned when merchants use Affirm's payment network to facilitate transactions.
- Card network revenue
Not separately reported as a percentage
Network revenue associated with virtual cards and Affirm Card transactions.
- Interest income
Not separately reported as a percentage
Interest earned on loans held for investment.
- Gain on sales of loans
Not separately reported as a percentage
Gains recognized when Affirm sells loans to third-party investors.
- Servicing income
Not separately reported as a percentage
Fees earned for servicing loans owned by third parties.
PhonePe
- Merchant payments
About 28% (FY25)
SmartSpeaker and POS device rentals, payment gateway fees and card-based transactions.
- Consumer payments
Not formally reported
Bill payments, recharges and incentives, including government UPI incentives.
- Loan and insurance distribution
About 7.8% (FY25)
Products from partner lenders and insurers, up from about 1% of revenue in FY23. FY25 revenue from operations was ~$825 million (₹7,115 crore).
Business model and strategy
Affirm
How it makes money
Affirm earns merchant-network revenue when consumers use its payment options, interest income on interest-bearing loans, card-network revenue, gains when it sells loans to third parties, and servicing income. Some plans carry 0% APR, while interest-bearing loans disclose a fixed repayment schedule. Affirm says it does not charge late or hidden fees.
Growth strategy
Affirm's disclosed growth priorities include increasing transaction frequency, expanding Affirm Card, adding merchants and platform integrations, entering additional markets, and maintaining diverse funding sources for originated loans.
Competitive advantage
Affirm underwrites each transaction individually in real time and offers fixed payment schedules without late fees. Its distribution includes integrations with major commerce platforms and merchants, while its funding model uses warehouse facilities, securitizations, and loan-sale partnerships.
PhonePe
How it makes money
Consumer UPI payments on PhonePe are free, and person-to-merchant UPI has carried zero merchant discount rate (MDR), so the payments app mostly works as a way to bring in users. Revenue comes from four main areas. First, merchant payments: SmartSpeaker soundbox and POS device rentals, payment gateway fees and card-based transactions.
Growth strategy
PhonePe's growth plan is to earn more from the users it already has rather than add payments users. It is focusing on four areas. Credit distribution covers personal, merchant and secured loans through partner lenders. Insurance broking is a second area. Wealth covers mutual funds and Share.Market broking. Merchant services cover soundboxes, POS devices and the payment gateway.
Competitive advantage
PhonePe's lead comes from scale on both sides of the UPI network. It has more than 700 million registered consumers and 50 million registered merchants. Much of that merchant base was built by field sales teams placing QR codes and SmartSpeaker devices across nearly every Indian pin code. That reach lets PhonePe sell loans, insurance and investments to customers it already has, without paying much to acquire them.
Questions about Affirm vs PhonePe
Which company has higher revenue — Affirm Holdings, Inc. or PhonePe?
Affirm Holdings, Inc. had $4.3B (FY2026), while PhonePe had ~$918.7M (FY2026). By latest annual revenue, Affirm Holdings, Inc. is the larger business, with PhonePe showing a smaller revenue base.
What is the market cap of Affirm Holdings, Inc. vs PhonePe?
Affirm Holdings, Inc. has a market capitalisation of $24.0B. A public market cap figure for PhonePe was not available (it may be privately held).
How does revenue per employee compare for Affirm Holdings, Inc. and PhonePe?
Affirm Holdings, Inc. has $1.81M / employee in revenue per employee, while PhonePe has $46k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Affirm Holdings, Inc. and PhonePe make money?
Affirm Holdings, Inc. and PhonePe generate revenue in fundamentally different ways. Affirm Holdings, Inc.: Affirm earns merchant-network revenue when consumers use its payment options, interest income on interest-bearing loans, card-network revenue, gains when it sells loans to third parties, and servicing income. PhonePe: Consumer UPI payments on PhonePe are free, and person-to-merchant UPI has carried zero merchant discount rate (MDR), so the payments app mostly works as a way to bring in users.
Is Affirm Holdings, Inc. bigger than PhonePe?
By last reported revenue, Affirm Holdings, Inc. ($4.3B (FY2026)) is the larger company compared to PhonePe (~$918.7M (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Affirm vs PhonePe overview