If you’ve been watching the ICC Cricket World Cup, youve definitely seen the PhonePe one too many times. The payments giant paid Rs 150 crore to get these advertising rights. It is the biggest UPI payments company in the country with a 49% of the market share.
But why is a payments giant selling insurance and why health insurance to be specific?
You see, as big as the PhonePe might be, and even with a giant like Walmart behind it, profit margins in the the payments business are pretty slim. And with a possible IPO in the works, PhonePe had no choice but to diversify and so it did.
It launched its insurance vertical in 2020. However, three years have passed now and PhonePe’s insurance business has contributed just 1% to the company’s consolidated revenue for FY2023.
And yet PhonePe continues to pour money into it, mainly on health insurance part. Is it a conscious choice or is it because it has no choice?
Tune in.
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