PhonePe Slashes Support Staff By 60% As AI Takes Center Stage Amid Transaction Surge

PhonePe, the fintech major, has significantly reduced its customer support workforce by 60 per cent over the past five years, cutting staff from around 1,100 agents to just over 400, even as the company experienced a 40 times surge in transactions between FY18-19 and FY23-24, according to its annual report filed on 21 October.

This sharp reduction in staff was achieved through the company's extensive reliance on AI-driven automation, with more than 90 per cent of customer service issues now being resolved by chatbots. Despite the downsizing, PhonePe has maintained and even improved its customer satisfaction levels, reflected in a consistently increasing Net Promoter Score (NPS) over the same period.

"Despite significant external challenges over the past five years, including the Zero MDR law and the Covid-19 pandemic, our relentless focus on process automation and unit economics has driven a clear path to profitability," the report noted.

In addition to automation, PhonePe has tapped into the growing demand for voice-based and Indian language conversational AI solutions in India. Several enterprise customers and mid-sized firms are now turning to conversational AI startups, including PhonePe, to develop voice-based customer support assistants.

In FY24, PhonePe reported a substantial 73 per cent increase in revenue, reaching Rs 5,064 crore, driven by cost efficiency and product diversification. This marks a significant leap from the Rs 2,914 crore revenue recorded in the previous fiscal.

Moreover, PhonePe Group has turned its Adjusted Profit After Tax (PAT) positive, registering Rs 197 crore, a notable recovery from the Rs 738 crore loss posted last year.