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Fintech firm CASHe’s revenue crosses Rs 560 Cr in FY23; remains profitable

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CASHe — a personal loan and credit line platform — has grown at a rapid clip in the post-pandemic period which is evident from its scale that crossed Rs 550 crore during the last fiscal year. However, in the process of scaling up, the Mumbai-based company’s profits saw a marginal dip during the period. CASHe’s revenue from operations surged 2.2X to Rs 560.6 crore during the fiscal year ending March 2023 in contrast to Rs 257.5 crore in FY22, according to its consolidated financial statements with the Registrar of Companies. V Raman Kumar-led CASHe is in the business of providing mobile application based loans (financial services segment) and other services like IT enabled services, marketing services, developing & managing outsourced service resolution. CASHe is a personal loan and digital lending platform targeting millennials and Gen Z in India. Besides personal loans, it provides “buy now, pay later” products to salaried individuals through an app and a proprietary underwriting algorithm based on alternate data. It also forayed into the wealth management space with the acquisition of wealthtech platform Sqrrl in May 2022. Revenue from financial services (interest on loans) is the primary source of income which accounted for 93% of its total collections while the remaining came from IT services. The company also earned Rs 17.16 crore via interest and gains on financial assets (non-operating income) in FY23. Including this, the company’s total income rose to Rs 577.75 crore during the year. On the other hand, interest paid on borrowings (finance cost) accounted for 22% of the total expenditure. This cost jumped 2.7X to Rs 122 crore in FY23 from Rs 45.2 crore in FY22. Advertising & promotional cost also grew 2.6X to Rs 42.6 crore during the year while employee benefit expense went up only 11.7% in FY23. The seven-year-old company also booked impairment loss on financial assets worth Rs 202.4 crore during the financial year. Overall, CASHe’s total expenditure spiked 2.4X to Rs 544 crore in FY23 from Rs 222.4 crore in FY22. Head to startup intelligence platform TheKredible for a complete expense breakdown and year-on-year financial performance of the company. The rising expenses of the company impacted its bottom line during the fiscal year. Despite over two-fold growth in scale, CASHe’s profits declined nearly 7% to Rs 26.3 crore in FY23 as compared to Rs 28.3 crore recorded in FY22. The cash burn also impacted its cash outflows from operations which increased 47.4% to Rs 454 crore during FY23. EBITDA margin of the company worsened by 517 BPS to 27.65% during the last fiscal year. On a unit level, CASHe spent Re 0.97 to earn a rupee of operating revenue in FY23. FY22-FY23 FY22 FY23 EBITDA Margin 32.82% 27.65% Expense/₹ of Op Revenue ₹0.86 ₹0.97 ROCE 21.54% 32.20% As per TheKredible, CASHe has raised around $38 million funding to date. This includes Rs 140 crore worth equity funding raised from its Singapore-based holding company TSLC Pte Ltd in January 2022.