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Servify posts Rs 755 Cr revenue in FY24; cuts losses by 59%

Entrackr · 2m

Post-sales service firm Servify has maintained steady growth over the past few fiscal years. Following the trend of FY23, the firm achieved 23.6% revenue growth in FY24 while reducing its losses by 59%. Servify’s revenue from operations grew to Rs 755 crore in FY24 from Rs 611 crore in FY23, its annual financial statements show. Servify provides brand-authorized after-sales support for mobile devices, gadgets, electronics, and home appliances. It allows users to store purchase bills and access official services for their devices, both during and after the warranty period. White-labeled protection plans sold via mobile apps and web portals contributed 87.8% of total operating revenue, which rose by 19.2% to Rs 663 crore in FY24. Additionally, income from mobile handset and spare parts sales grew by 66%, reaching Rs 91 crore during the same period. Notably, India is Servify’s largest revenue contributor, accounting for 56.8%, followed by the United States of America at 38.6%. For the post-sales service firm, the cost of materials, including plans and mobile handsets, made up 66.8% of total expenses. This cost saw a modest increase of 4.6%, reaching Rs 574 crore in FY24. Significantly, the firm recorded a reduction in employee benefits to Rs 158 crore, down from Rs 183 crore in FY23. Information technology, legal, telecommunications, and other related overheads contributed to an overall cost of Rs 859 crore in the last fiscal year. FY23-FY24 FY23 FY24 EBITDA Margin -32.95% -8.83% Expense/₹ of Op Revenue ₹1.39 ₹1.14 ROCE -190.08% -34.48% The increased scale and steady cost control helped Servify reduce its losses by 59%, reaching Rs 94 crore in FY24 compared to Rs 229 crore in FY23. Its ROCE and EBITDA remained negative at -34.48% and -8.83%, respectively, with Servify spending Rs 1.14 to earn each rupee in FY24. The Blume Venture-backed company has raised over Rs 1,000 crore to date, including $65 million led by Singularity Growth in 2022, as per TheKredible. Its notable investors include Iron Pillar, Beenext, 3F Ventures, and Avanz Capital. Servify’s revenue-to-enterprise multiple stood at 9.4X in the previous fiscal year. Servify has a lot going for it, in terms of a strong domestic presence in a growing home market, categories that are significant in scale and service demands, and potentially, new categories opening up all the time. The push towards premiumisation is also a huge driver for the firm, as higher priced products invariably come with the sort of protection plans and more that Servify offers. The firm’s biggest challenge is of course competition, not just in India but globally as well, including upcoming firms from China. How Servify weathers these will actually define the growth trajectory and any further control over costs.