PhonePe has slashed its customer care staff by 60% over the last five years, from about 1,100 agents to just over 400. According to the fintech giant’s October 21 annual report, between FY18-19 and FY23-24, the transactions increased 40-fold during this time.
The company has achieved considerable operational efficiencies by using AI-driven chatbots to resolve over 90% of customer care issues automatically. According to PhonePe’s study, “this efficiency was achieved by increasing automated customer service issue resolutions powered by AI-driven chatbots.”
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“This efficiency was achieved by increasing automated customer service issue resolutions powered by AI-driven chatbots, to over 90%,” the company said in the annual report.
Despite facing challenges like the “Zero MDR” law and the COVID-19 pandemic, PhonePe’s focus on process automation and cost control helped it achieve profitability. The company’s Net Promoter Score (NPS), which measures customer satisfaction, has reportedly improved every year over the last five years.
In August 2024, PhonePe announced a 74% jump in revenue for the fiscal year ending March 2024, reaching Rs 5,064 crore, up from Rs 2,914 crore the previous year. The company also declared that it has reached profitability, excluding Employee Stock Ownership Plan (ESOP) expenses, with an adjusted net profit of Rs 197 crore for FY24—a significant improvement from its Rs 738 crore loss in FY23.
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