Sameer Nigam founded PhonePe in 2015 and serves as its Chief Executive Officer. Before PhonePe, he served as the SVP Engineering and VP Marketing at Flipkart. His Flipkart journey started in 2011 when the company acquired his earlier startup – Mime360, a digital media distribution platform.
PHONEPE SUCCESS STORY – FOUNDERS, INDUSTRY, BUSINESS & REVENUE MODEL
PHONEPE – FOUNDERS AND TEAM
Sameer Nigam, Rahul Chari, and Burzin Engineer are the founders of PhonePe.
PHONEPE – INDUSTRY
The digital payment industry in India has experienced rapid growth, with transactions increasing by approximately 76% in the past 12 months. The sector is projected to reach a value of around $700 billion by 2022. Within this thriving industry, PhonePe holds a dominant position with a market share of 46.3%, while Google Pay trails behind with a market share of 36.4% as of December 7, 2021.
PHONEPE – BUSINESS MODEL
PhonePe is a UPI-based payment platform that facilitates money transfers between bank accounts. In addition to its core payment services, the PhonePe mobile app offers various features that enable users to purchase products and access services such as groceries, insurance, and food. The company’s role involves promoting these products and services to its users.
PHONEPE – REVENUE MODEL
PhonePe generates revenue through various means, including commissions from product promotions on its app and partnerships with partners through its ‘Switch’ platform. Similar to recharge points or centers that earn commissions from telecom companies when customers recharge their phones, PhonePe also receives a commission when users recharge their phones through its app. The company also earns a commission from online purchases made by users through its platform. With its large user database, PhonePe leverages data insights to understand payment patterns, customer purchasing behavior, and retailer/store details, which contribute to its profitability. The platform continues to expand its customer base through promotions and offers.
