An Internship

Report

On

“Phone Pe Freelencer”

PHONICS GROUP OF INSTITUTIONS, ROORKEE

FOR THE PARTIAL FULFILMENT OF THE
DEGREE

“MASTER OF BUSINESS
ADMINISTRATION”(FINAL YEAR REGULAR
DEGREE PROGRAMME) [BATCH 2021-2023]

Submitted To : Submitted By :
Mr. Arun Kumar Singh Subrata Debnath
(Asst. Professor) MBA – III Sem
 DECLERATION

I, the undersigned, hereby declare that the dissertation report entitled “Phone Pe pvt. ltd. written
and submitted by me, in partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION underthe guidance of Mr. Arun Kumar
Singh is my original work and conclusion drawn there in are based on the material collected by
myself.

Mr. Arun Kumar Singh Subrata Debnath

(Asst. Professor)
 ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was

fortunate enough to get support from large number of people to whom
I shall always remain grateful.

I would like to record my gratitude to “Phone Pe” for the

allowing me to understand this project. I take this opportunity to
thanks for providing me an opportunity to work for “Phone Pe pvt.
ltd.”.

I am also desirous of placing on record profound indebtedness to

Mr. Arun kumar Singh(Asst. Professor) of PHONICS GROUP OF
INSTITUTION, ROORKEE for the valuable advice, guidance,
precious time and support that he offered.

I would also like to thanks all the respondents for giving us their
precious time & relevant information and experience, as and when
required without which this project would not have been possible.

SubrataDebnath
 INDEX:
1. History
2. Innovation and partnerships
3. Ownership
4. Financial
5. Licenses received in 2021
6. Awards and recognition
7. Legal challenges
8. Donations
9. ESOP
10. See also

11. References
12. .External links
 Company Profile:

History
PhonePe was incorporated in December 2015. In April 2016, the company was
acquired by Flipkart and as part of the acquisition, the FxMart license was
transferred to PhonePe and rebranded as the PhonePe wallet. PhonePe's founder
Sameer Nigam was appointed as the CEO of the company.
In August 2016, the company partnered with Yes Bank to launch a UPI-based
mobile payment app, based on the government-backed UPI platform.
Within three months of launch, the app was downloaded by over one crore users. In
2018, PhonePe became the fastest Indian payment app to get a five crore badge on
the Google Play Store.[30] The PhonePe app overtook BHIM to become the market
leader in UPI transactions in August 2017.
 Innovation and partnerships
PhonePe helps merchants to accept payments through all UPI-based apps, debit and credit cards,
as well as wallet (Including third party wallets) on the app.
2017
In October, PhonePe launched a low-cost POS device built in India. The Bluetooth enabled POS
device looks like a calculator and works with AA batteries. The hardware uses Bluetooth
connectivity and enables payments through all the mobile devices that can access the PhonePe
app.
2018
PhonePe partnered with Freecharge in January 2018. This partnership enabled PhonePe users to
link their existing Freecharge wallets to the PhonePe app. PhonePe has also entered similar
partnerships with Jio Money and Airtel Money.
PhonePe has partnered with RedBus, Ola, eat.fit, Goibibo, Swiggy along with over 300 consumer
brands for integrating their existing PWAs (progressive web apps) or mobile sites to its Switch
platform. These partnerships enable businesses of all sizes to build and deploy apps on PhonePe
Switch with a unified login and payments experience for users.
2019
PhonePe launched tax-saving funds to help customers minimise their tax burden by investing in
equity-linked saving schemes. In the same year, PhonePe also became the first payment app to
allow customers to make bids for initial public offerings through the UPI platform.
2020
In January, PhonePe became the first digital payment platform in India to launch international
travel insurance. PhonePe also launched Liquid Fund in association with Aditya Birla Mutual Fund
to provide the combined benefits of a fixed deposit and a mutual fund.
In February, PhonePe launched the chat feature on its app to enable its users to have
conversations with each other within the app while requesting money or confirming the receipt of
payment.
In May, PhonePe partnered with general insurers Bajaj Allianz and ICICI Lombard to launch two
separate coronavirus-specific insurance products for covering hospitalisation costs during
the COVID-19 pandemic. It also launched Super Funds in the same month to aid long-term wealth
creation by helping customers invest in equity, debt, and gold funds of mutual fund companies. [48]
In June, the company launched domestic multi-trip insurance to cover all risks associated with all
modes of travel within India at an affordable annual premium.[49][50]
In July, the company formed a partnership with ICICI Lombard to launch Hospital Daily Cash
insurance that covers expenses incurred during hospitalisation due to injury or illnesses. [51][52]
In September, PhonePe became one of the largest insurance tech distributors in the country with
over 5 lakh insurance policies sold on its platform. The company also expanded its Mutual Funds
lineup in the same month by launching 7 new categories. [53][54]
In October, the company ventured into motor insurance with the launch of car and bike insurance
policies.[55][56] PhonePe emerged as the fastest-growing insurtech company in India.[57][58]
In November, PhonePe is the largest digital platform for buying gold with a 35% market share. [59]
In December, Flipkart partially hived off PhonePe into a separate entity in order to access
dedicated capital. As a part of this hive-off, PhonePe secured US$700 million in primary capital at
a post-money valuation of US$5.5 billion from existing investors of Flipkart led by Walmart.[60][61]
 2021
In September, PhonePe partnered with Indian Super League club Kerala Blasters FC as their
official payments partner for the 2021–22 Indian Super League season.[62]
In March, PhonePe became the first digital payments platform to cross 100 crore monthly
transactions on UPI, clocking almost 130 crore transactions across all of its payment offerings,
including third-party debit and credit cards and its own digital wallet. [63]
PhonePe also emerged as the leader in terms of transactions processed on Bharat Bill Payment
System.[64] It reportedly registered over 10 lakh UPI-enabled AutoPay mandates since the launch
of the AutoPay functionality feature.[65] It had also processed over 200 crore monthly
transactions on its platform by October.[66]
2022
In May 2022, PhonePe announced the acquisition of India-based Wealth Management fund
WealthDesk for $50 million and Smart Beta Wealth Management Platform, OpenQ for $25 million.
The deals were worth $75 million and done with the aim of widening PhonePe's offerings in the
payments market.[67]

Ownership
Shareholders Shareholding[68]

Flipkart Group 87%[citation needed]

Walmart 10%[citation needed]

Others 3%

Financial

Year Revenue (In crores) Profits/Loss (In crores) Source

[69][70]
FY 2016 0.19 -4

[71]
FY 2017 3 -129

FY 2018 43 -791
[72]

FY 2019 184 -1,907

[73][74]
FY 2020 372 -1,772
FY 2021 690 -1,729

FY 2022 1,646 -2,014

Licenses received in 2021

 PhonePe Account Aggregator Pvt Ltd, a wholly owned subsidiary of the PhonePe Group,
received an in-principle approval to operate as an account aggregator from the Reserve Bank
of India. The license allows PhonePe to launch its account aggregator. The AA platform allows
the data of individuals to be collected, with their consent, and shared among financial
institutions.[75]
 PhonePe was issued an insurance broking license from the Insurance Regulatory and
Development Authority of India (IRDAI) that allows PhonePe to provide personalised product
recommendations to its users.

Awards and recognition

 2018: Recognised by National Payments Corporation of India (NPCI) for driving the largest
number of merchant transactions on the UPI network.[77]
 2018: Best Mobile Payment Product or Service Category at the IAMAI India Digital Awards
2018.[78]
 2018: Won the UPI Digital Innovation Award from NPCI in 2018. [79]
 2018: Won the SuperStarUp Asia Award in 2018. [80]
 2018: Awarded at the India Advertising Awards 2018 in the Telecom and Technology
category.[81]
 2019: Won the ‘Best Mobile Payment Product or Service’ at the 9th India Digital Awards 2019
organised by IAMAI.[82]
 2019: 'Best Digital Wallet' Initiative at the Indian Retail and eRetail Awards 2019. [83]
 2019: Awarded the 'Best Digital Wallet' initiative at the 8th Annual Indian Retail & eRetail
Awards 2019 organised by Zee Business and The Economic Times.
 2021: Won two awards at IAMAI India Digital Awards 2021 - Gold for Excellence in Wealth
Management (for Mutual Funds category) and Silver for Unstoppable India video
 2021: Won the ‘Excellence in Insurtech’ award at Assocham's Fintech & Digital Payments
Awards 2021 [86]

Legal challenges
On 14 January 2017, ICICI bank blocked PhonePe transactions, citing the reasons that it did not
meet the NPCI guidelines.[87][88] Initially, on 19 January 2017, NPCI instructed ICICI to allow UPI
transactions via PhonePe.[89] During this period, Airtel too blocked PhonePe transactions on its
platforms.[90] A day later, on 20 January 2017, NPCI renounced the previous instructions citing the
reason that PhonePe indeed violated the UPI norms. [91][92][93]
After this, PhonePe closed its operations on Flipkart's website, [94] to align itself with the terms
stated in the updated verdict from NPCI. By February, 2017, PhonePe resolved the issues
with ICICI and Airtel.[95][96]

Donations
During COVID-19 pandemic in India, PhonePe decided to contribute ₹10 for every single user who
pays to the PM CARES fund via their app with a aim to donate ₹100 crore.[97]
 ESOP
PhonePe allots employee stock options (ESOPs) to its full time employees.[98] In November 2021,
PhonePe was reported to have conducted a buyback of ESOPs worth ₹135 crore, covering 75% of
its current workforce who have completed at least a year of service. [99]

See also

 E-commerce payment system

 Mobile payment
 Digital wallet
 List of online payment service providers

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External links

 Official website

1. Flipkart
2. Banking in India
3. Mobile payment software
4. Financial technology in India

Categories:

 Electronic funds transfer

 Payment systems
 Flipkart acquisitions
 Companies based in Bangalore
 Financial services companies established in 2015
 E-commerce in India
 Indian brands
 Internet properties established in 2015
 Mobile payments in India
 Online payments
 Payment service providers
 Privately held companies of India
 Financial services companies of India
 2015 establishments in Karnataka