Afterpay vs PhonePe: Revenue, Profit and Business Model
Afterpay had ~$596.4M of annual revenue in FY2021 and a net loss of ~$102.8M. PhonePe had ~$918.7M of annual revenue in FY2026 and a net loss of ~$323.9M.
Latest financial snapshot
Financial summary
Afterpay
Afterpay reported standalone results in Australian dollars before Block acquired it. Total income rose from ~$903,000 (A$1.4 million) in FY2016 to ~$596 million (A$924.6 million) in FY2021, while FY2021 statutory loss after tax was ~$103 million (A$159.4 million). Block does not publish a comparable standalone Afterpay revenue series after the January 2022 close. Afterpay was acquired by Block, Inc. (formerly Square) in 2022 for approximately $29 billion, one of the largest acquisitions in Australian corporate history.
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
Afterpay
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2021 | ~$596.4M | ~-$102.8M | -17.2% | +78.1% | Source |
| FY2020 | ~$334.9M | — | — | +96.6% | Source |
| FY2019 | ~$170.3M | — | — | +85.6% | Source |
| FY2018 | ~$91.8M | — | — | +521.4% | Source |
| FY2017 | ~$14.8M | — | — | +1535.7% | Source |
| FY2016 | ~$903,000 | — | — | — | Source |
Where the revenue comes from
Afterpay
- Merchant fees
Not formally reported
Fees paid by merchants on transactions processed through Afterpay were the principal source of pre-acquisition income.
- Late fees
Not formally reported
Afterpay also earned capped late fees from overdue customer installments. A current standalone percentage is not disclosed.
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
Afterpay
How it makes money
Before the Block acquisition, Afterpay earned most income from merchant fees on purchases processed through its platform, with a smaller contribution from customer late fees. Customers generally paid four installments over six weeks and paid no interest. Block now reports Afterpay within its consolidated results rather than as a standalone public company.
Growth strategy
Block stated at closing that it intended to add Afterpay BNPL to Square checkout, let Afterpay customers manage installments in Cash App, and help Cash App customers discover sellers and BNPL offers. Subsequent expansion has focused on those seller and consumer connections.
Competitive advantage
Afterpay combines installment checkout with a merchant directory and an established consumer brand. Block can connect the product to Square sellers and Cash App customers, although Block identifies merchant retention and product integration as acquisition risks.
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 Afterpay vs PhonePe
Which company has higher revenue — Afterpay Limited or PhonePe?
Afterpay Limited had ~$596.4M (FY2021), while PhonePe had ~$918.7M (FY2026). By latest annual revenue, PhonePe is the larger business, with Afterpay Limited showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
How does revenue per employee compare for Afterpay Limited and PhonePe?
Afterpay Limited has $459k / 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 Afterpay Limited and PhonePe make money?
Afterpay Limited and PhonePe generate revenue in fundamentally different ways. Afterpay Limited: Before the Block acquisition, Afterpay earned most income from merchant fees on purchases processed through its platform, with a smaller contribution from customer late fees. 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 Afterpay Limited bigger than PhonePe?
By last reported revenue, PhonePe (~$918.7M (FY2026)) is the larger company compared to Afterpay Limited (~$596.4M (FY2021)). 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 Afterpay vs PhonePe overview