The NPCI-spun-off digital payments app BHIM has declared a net loss of ₹68 crore for the fiscal year ending March 2025.
Revenue during the same period was extremely low — about ₹3.7–4.0 crore (₹3.7 crore as per some reports).
This stark imbalance between revenue and expenses has driven the deep loss.
It’s worth noting that BHIM was hived off from NPCI mid-fiscal, so direct comparisons with prior years are complicated.
Why the Loss Was So Large
Multiple factors contributed to the heavy loss:
- High Operating & Marketing Costs
- BHIM spent around ₹65 crore in marketing and promotions in FY25 — a large share of its expenses. Moneycontrol
- Its total expense run rate for FY25 is reported at ₹106 crore.
- Low Monetization & Revenue Base
With revenue of just a few crores, BHIM had little buffer to absorb expenses or support growth initiatives. - Cashbacks, Rewards & Incentives
In efforts to increase usage and compete with other UPI wallets, BHIM likely offered subsidies, cashback, or incentives — increasing cost burden. - Spinoff Transition Effects
Post separation from NPCI, BHIM took on standalone cost structures, overheads, and brand/building costs that historically may have been shared or subsidized. - Scale vs Competition
BHIM continues to hold a small market share in the UPI ecosystem; with giants like PhonePe, Google Pay, Paytm dominating, margins remain elusive.
Implications & What to Watch
- Sustainability Question
A ₹68 crore loss on ₹4 crore revenue is not sustainable. BHIM must drastically grow revenue or cut costs (or both) to survive independently. - Need for Strategic Shift
Unless BHIM finds a monetization path (e.g. value-added services, financial products, mainstream adoption), it may continue bleeding. - Support from NPCI
As its parent / founding body, NPCI may need to inject capital, subsidize operations, or reconsider BHIM’s role in the UPI ecosystem. - Market Position & Growth Strategy
BHIM needs to boost adoption, retention, and transaction fees or partnerships to scale revenue. - Comparisons with Other UPI Apps
Observing how competitors monetize (wallets, lending, financial services) may guide BHIM’s strategy going forward.
