PhonePe Shuts Down Engineering Office In The US: Report

PhonePe has announced the closure of its US engineering office, marking the end of a four-year operation. The Bay Area team, comprising seven to eight engineers, collaborated with PhonePe's main mobile platform and engineering teams in Bengaluru and other Indian locations. The decision to shut down the office stemmed from PhonePe's assessment that the US operation was not yielding sufficient outcomes to justify its continuation.

Consolidating these efforts was also seen as a cost-cutting measure. This development follows PhonePe's initial announcement of its US office in June 2022, which aimed to employ around 10 engineers and develop technology to support the company's anticipated 300 million users. The leadership of the US office was under Gaurav Lochan, a former Meta engineering executive who joined PhonePe in April 2022.

However, Lochan reportedly left the company in July 2026, now serving as an adviser at cybersecurity startup Aucert. The closure does not signal a broader retreat from overseas expansion, as PhonePe recently secured its first international license from the Central Bank of the UAE, enabling them to offer services in the UAE. Additionally, PhonePe has partnered with Visa to launch three cardless payment solutions for consumers and merchants in India.

Despite the closure of its US engineering office, PhonePe's financial performance remains strong, with operating revenue increasing by 11.5% to ₹7,920.5 crore in FY26 from ₹7,105 crore in FY25. However, the company's net loss widened by 62% to ₹2,792 crore in the same period.