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Probo turns profitable as it posts 32X growth in FY23

EntrackrEntrackr · 1y ago
Probo turns profitable as it posts 32X growth in FY23
Medial

Event-based trading platform Probo registered hyper-growth in the last fiscal year with its operating scale blowing up 32X in FY23. Significantly, the Peak XV-backed firm also turned profitable for the first time during the said period. Probo’s revenue from operations skyrocketed to Rs 86.37 crore in FY23 from Rs 2.66 crore in FY22, according to its annual financial statements filed with the Registrar of Companies (RoC). Founded by Sachin Gupta and Ashish Garg in 2019, Probo is an event trading platform that allows users to trade their opinions on future events in various categories such as cricket, politics, football, finance, entertainment, and startups among others. Platform fees received from the users for participating in the contest were the primary source of income, accounting for 96% of the total operating revenue in the last fiscal year. Collection from this segment grew 34.2X to Rs 83 crore in FY23. Its allied services and interest income on long-term investments (non-operating activities) tallied Probo’s total revenue to Rs 93.83 crore in FY23 from Rs 3.97 crore in FY22. It’s worth noting that this income didn’t fall under the new General Service Tax (GST) structure which mandates a charge of 28% GST on deposits. The new taxation regime is slated to eat up a significant margin of companies like Probo, MPL, and Dream11, among many others. Moving to the cost sheet, its advertising cum promotional cost formed around 52.75% of the total expenses which shot up 2.3X to Rs 52 crore in FY23. Probo also saw a 3.6X surge in its employee benefits. The firm’s burn on information technology, legal/professional, conveyance, and other overheads led its overall expenditure up by 2.8X to Rs 98.67 crore in FY23 from Rs 34.4 crore in FY22. Head to TheKredible for a detailed expense breakup. Expense Breakdown Total ₹ 34.4 Cr https://thekredible.com/company/probo/financials View Full Data To access complete data, visithttps://thekredible.com/company/probo/financials Total ₹ 98.67 Cr https://thekredible.com/company/probo/financials View Full Data To access complete data, visithttps://thekredible.com/company/probo/financials Advertising and Promotional expenses Employee Benefit Information technology expenses Legal professional charges Miscellaneous expenses Others To check complete Expense Breakdown visit thekredible.com View full data The multifold scale and controlled expenditure helped Probo to turnaround its fundamentals and register a profit of Rs 3.71 crore in FY23 as compared to Rs 30.43 crore loss in FY22. Its ROCE and EBITDA margin recorded at -2% and -4.6% respectively. On a unit level, it spent Rs 1.14 to earn a rupee in FY23. Probo has raised around $18-20 million across several rounds. According to the startup data intelligence platform TheKredible, Peak XV is the largest external stakeholder with 21.72% followed by Elevation Capital and The Fundamentum Partnership. Its co-founders Gupta and Garg cumulatively command 45.5% stake in the company. FY22-FY23 FY22 FY23 EBITDA Margin -761% -4.6% Expense/₹ of Op Revenue ₹12.93 ₹1.14 ROCE -17% -2% The ‘prediction’ business remains a very young, although promising avenue for growth in India. As the market evolves, expect the industry to change too, creating many winners and losers, somewhat like their users like to predict. For Probo, the experience it has already acquired along with a user base, besides the obvious advantage of low to zero burn now, positions the firm very well to build on this base.

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Leegality turns profitable with 87% revenue growth in FY24

EntrackrEntrackr · 9m ago
Leegality turns profitable with 87% revenue growth in FY24
Medial

Document infrastructure platform Leegality maintained its growth trajectory in the fiscal year ending March 2024. After achieving 100% revenue growth in FY23, the IIFL Fintech Fund-backed company reported an 87% spike in scale in the latest fiscal year. Leegality’s revenue from operations jumped to Rs 62 crore in FY24, as per its financial statement filed with the Registrar of Companies. Leegality enables businesses to digitally transform document logistics, eliminating physical paperwork in the lending ecosystem by providing digital infrastructure, including eSign and eStamping solutions. The sale of these services was the only source of collection for the firm in FY24. Leegality additionally earned Rs 4.2 crore from interest on bank deposits, bringing its total income to Rs 66.41 crore in FY24, a substantial increase from Rs 35.51 crore in FY23. Looking at expenses, employee benefit was the major contributor, accounting for 56% of total costs, increasing by 62.5% to Rs 36.4 crore in FY24 from Rs 22.4 crore in FY23. E-Sign Charges made up 15% of total expenses, rising 2.3 times to Rs 9.5 crore.Tech infrastructure formed 10% of expenses, growing by 55% to Rs 6.6 crore. Other costs, including stamp processing, advertising, and legal fees, brought total expenses to Rs 65 crore during the last fiscal year, reflecting a 66% increase from Rs 39 crore in FY23. With significant revenue growth, Leegality turned profitable in FY24, reporting a profit of Rs 1.11 crore, compared to a loss of Rs 3.5 crore in FY23. Its ROCE and EBITDA margin stood at -2.75% and 3.33%, respectively. On a unit-basis level, the company spent Rs 1.04 to earn each rupee of operating revenue in FY24. FY23-FY24 FY23 FY24 EBITDA Margin -8.53% 3.33% Expense/₹ of Op Revenue ₹1.18 ₹1.04 ROCE -7.49% 2.75% Even though it operates in a fairly competitive space, Leegality’s turn to profitability indicates the ‘sensible’ economics within the segment. Even as more and more transactions and the documentation required are being digitised, the scope of work for Leegality and its peers will only increase, providing a clear pathway to growth. The only risk we can see is any government backed alternative like say, Digilocker which expands services to overlap with what these offer.

Traya posts 236 Cr revenue in FY24; turns profitable

EntrackrEntrackr · 6m ago
Traya posts 236 Cr revenue in FY24; turns profitable
Medial

Traya recorded over threefold year-on-year growth, with its revenue crossing Rs 230 crore during the previous fiscal year ending March 2024. Moreover, with this pace, the Mumbai-based company became profitable in the same period. Traya’s revenue from operations surged 3.8X to Rs 236 crore in FY24 from Rs 61 crore in FY23, its annual financial statements sourced from the Registrar of Companies show. Established in 2019, Traya focuses on addressing hair loss at its core by identifying the underlying causes. It provides personalized hair solutions and guidance from a team of experienced hair coaches and physicians. Income from product sales accounted for 99.36% of Traya's total operating revenue, which rose to Rs 234.5 crore in FY24, up from Rs 61 crore in FY23. The rest income came from courier services and doctor consultation fees. Moving on to the expense part, marketing and sales accounted for 43% of the overall expenditure. This cost grew twofold to Rs 98 crore in FY24 from Rs 51 crore in FY23. To the tune of scale, the cost of procurement of materials surged 3.6X to Rs 54 crore in FY24. Traya’s employee benefits also saw a 4X surge to Rs 36 crore in FY23. Other overheads including freight, legal, and travelling increased the overall cost by 154% to Rs 229 crore in FY23 from Rs 90 crore in FY23. The 3.8X growth in scale enabled Traya to achieve a notable profit of Rs 9 crore in FY24, a stark contrast to the Rs 28 crore loss in FY23. Its ROCE and EBITDA margin improved to 8.7% and 5.04%, respectively. On a unit basis, the company spent Rs 0.97 to earn a rupee in FY24. Traya's total current assets recorded at Rs 159 crore, with a cash balance of Rs 85 crore at the end of the previous fiscal year. According to startup-data intelligence platform TheKredible, Traya has raised approximately Rs 96 crore to date, including Rs 75 crore in funding from Xponentia Capital in April this year. The company counts notable investors such as Fireside Ventures, Kae Capital, Xponentia Capital, and Whiteboard Capital.

Probo posts Rs 459 Cr revenue and Rs 92 Cr profit in FY24

EntrackrEntrackr · 5m ago
Probo posts Rs 459 Cr revenue and Rs 92 Cr profit in FY24
Medial

Probo’s revenue from operations surged to Rs 459 crore in FY24 from Rs 86 crore in FY23, according to its consolidated annual financial statements sourced from the Registrar of Companies (RoC). Founded by Sachin Gupta and Ashish Garg in 2019, Probo is an event trading platform that allows users to trade their opinions on future events in various categories, such as cricket, football, finance, entertainment, and startups, among others. The primary revenue source for Probo was platform fees collected from users for contest participation, accounting for 97.8% of the total collection. This income grew 5.4X to Rs 449 crore during the last fiscal year. Income from allied services and other sources, including interest income from current investments, brought Probo’s total income to Rs 474 crore during the last fiscal year. Advertising and promotion accounted for 77% of Probo’s total expenses, soaring 5.2X to Rs 271 crore in FY24 from Rs 52 crore in FY23. Meanwhile, employee benefit expenses grew by 27% to Rs 28 crore in FY24. Information technology, platform integration, legal, traveling, and other overheads took the overall cost up by 3.5X to Rs 351 crore in FY24. The combination of strong revenue growth and controlled costs enabled Probo’s net profit to surge 25X, to Rs 92 crore in FY24, up from Rs 3.7 crore in FY23. The Peak XV-backed firm spent Re 0.76 to earn a rupee during the fiscal year ending March 2024. Probo’s return on capital employed (ROCE) rose to 42.6%, while its EBITDA margin improved to 26.1%. By the end of FY24, the company's total current assets stood at Rs 274 crore, with cash and bank balances amounting to Rs 169 crore. Probo has raised around $28 million across several rounds. According to the startup data intelligence platform TheKredible, Peak XV is the largest external stakeholder, with 21.72%, followed by Elevation Capital and The Fundamentum Partnership. Probo is on to a good thing as long as it can keep growing its flock, especially its core user base. It’s clearly doing it right, going by the sharp rise in metrics across the board.

Ola ride-hailing biz falls 11% in FY24, turns EBITDA profitable

EntrackrEntrackr · 5m ago
Ola ride-hailing biz falls 11% in FY24, turns EBITDA profitable
Medial

Ola recorded a 5.5% year-on-year decline in revenue for the fiscal year ending March 2024, indicating no growth during the period. Despite the revenue drop, the firm managed to turn EBITDA profitable, driven by cost reductions in employee benefits and communication costs. Ola’s revenue from operations declined 5.5% to Rs 2,012 crore in FY24 from Rs 2,128 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies (RoC) show. Income from Ola's ride-hailing business contributed 87.5% of the total operating revenue in FY24, but it decreased by 11.3% to Rs 1,761 crore, down from Rs 1,985 crore in FY23. Ola's financial services business recorded a 3.6X growth in FY24, with revenue increasing to Rs 227 crore from Rs 63 crore in FY23. This segment focuses on selling insurance policies and providing financing services for vehicle purchases, primarily for Ola Electric. The company also added Rs 192 crore mainly from the interest on deposits which brought its overall income to Rs 2,204 crore in FY24, compared to Rs 2,277 crore in FY23. For Ola's ride-hailing business, transportation costs made up 28.8% of total expenses. Due to reduced mobility, these costs dropped by 15.2% to Rs 607 crore in FY24. Its employee benefit expenses shrank 42% to Rs 334 crore, while telephone and postage costs fell by 28% to Rs 280 crore. Surprisingly, its spending grew 2.6X to Rs 107 crore in FY24. Its legal, rent, and other overheads took the overall cost to Rs 2,107 crore in FY24 from Rs 2,517 crore in FY23. Note: We have excluded the cost of allowance for impairment of goodwill and other intangible assets in the calculation of losses which stood at Rs 319 crore and 149 crore in FY24 and FY23, respectively, due to its non-cash in nature. Despite the decline in its ride-hailing business, Ola effectively controlled its costs, resulting in a loss of Rs 10 crore in FY24, compared to a Rs 623 crore loss in FY23. Notably, the firm becomes EBITDA profitable during the previous fiscal year. On a unit level, the company spent Re 0.89 to earn a rupee of operating revenue during the fiscal year. In August 2024, Bhavish Aggarwal announced that Ola Cabs would be rebranded as Ola Consumer, bringing together its financial services, cloud kitchens, and electric logistics under one platform. The company is also moving closer to its initial public offering (IPO). According to sources, Ola’s parent company, ANI Technologies Private Limited, has scheduled an extraordinary general meeting (EGM) for November 14, 2024, to discuss matters related to the IPO. However, Ola hasn’t provided an official comment on the timeline for its public listing. In August 2024, Aggarwal announced that Ola Cabs would be rebranded as Ola Consumer, integrating financial services, cloud kitchens, and electric logistics under one umbrella. The company has also faced valuation markdowns by its investors in recent years. In August 2024, Vanguard adjusted Ola’s valuation to approximately $2 billion. Earlier, the investment advisor had reduced the valuation to $1.88 billion as of November 30, 2023. This marks a significant decline from 2021, when Ola was valued at $7.3 billion.

Probo appoints Shimal Kapoor as head of policy

EntrackrEntrackr · 1m ago
Probo appoints Shimal Kapoor as head of policy
Medial

Probo appoints Shimal Kapoor as head of policy Opinion trading platform Probo has appointed Shimal Kapoor as head of policy to strengthen its engagement with regulators and support the policy development process for India’s skill-based gaming sector. The company, which serves over 34 million users, said this strategic hire aligns with its goal to contribute to the regulatory framework of this emerging category. Shimal will work closely with government bodies and policymakers. She brings a diverse background in law and public policy to her new role as Head of Policy at Probo. Her experience includes positions at Meta, the World Bank Group, and the law firm Shardul Amarchand Mangaldas & Co. “India's skill-based gaming sector is at an inflection point, driving both digital innovation and economic value. Probo has quickly become the top choice for opinion trading, and I am excited to bring my experience to the table, helping deepen Probo’s connections with stakeholders, and cement its position as one of the leading players in the market,” said Shimal. Probo enables users to trade opinions on real-world events across sports, entertainment, and current affairs. The company is backed by Peak XV, Elevation Capital, and Fundamentum. As per TheKredible, Probo’s revenue from operations surged to Rs 459 crore in FY24 from Rs 86 crore in FY23. During the period, its profit also increased massively to Rs 92 crore from Rs 3.7 crore.

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