🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Related News

ZingHR crosses Rs 120 Cr revenue mark in FY24, cuts losses by 67%

EntrackrEntrackr · 3m ago
ZingHR crosses Rs 120 Cr revenue mark in FY24, cuts losses by 67%
Medial

ZingHR crosses Rs 120 Cr revenue mark in FY24, cuts losses by 67% Cloud-based HRtech firm ZingHR sustained its growth streak in the last fiscal year, with revenue from operations surging over 47%, crossing the Rs 120 crore mark. Simultaneously, the Mumbai-based company reduced its losses by two-thirds during the same period. According to its consolidated financial statement sourced from the Registrar of Companies (RoC), ZingHR's revenue from operations climbed to Rs 124 crore in FY24 from Rs 84 crore in FY23. ZingHR offers staffing and talent acquisition services across various sectors, including BFSI, retail, and IT. The company generates its revenue exclusively from the sale of subscription-based software. Similar to other recruiting and allied service platforms, Zing HR’s employee benefits remained the largest cost component, accounting for 61% of total expenses. This cost rose 37% to Rs 81 crore during the fiscal year ending March 2024 from Rs 59 crore in FY23. Server and data security charges saw a 71% spike, reaching Rs 12 crore, while product maintenance costs increased 50% to Rs 9 crore. In contrast, professional fees and other expenses witnessed marginal reductions. Overall, total expenses for ZingHR grew 24% to Rs 133 crore in FY24. Despite rising costs, ZingHR significantly reduced its losses, reporting a net loss of Rs 7 crore in FY24, an improvement from Rs 21 crore in FY23, a 67% reduction. The company's Return on Capital Employed (ROCE) and EBITDA margin stood at -24.69% and -5.52%, respectively. On a unit level, ZingHR spent Rs 1.07 to earn a rupee during the last fiscal year. The Mumbai-based firm reported current assets worth Rs 56 crore, including Rs 12 crore in cash and bank balances in FY24. According to TheKredible, ZingHR has raised $14 million in funding to date, with Tata Capital as its lead investor, holding a 35.82% stake. ZingHR seems close to breaking out of any future fundraising requirements, assuming that momentum from FY24 has carried over into FY25 numbers as well. The disruption in the HRTech space is vastly underestimated, considering the continuous disruptions seen for the past decade, and ZingHR’s performance is quite good in that situation. While we don’t have a breakdown for revenue from India versus outside, the firm will do well to build revenues from exports. At a time when even forbidden sectors like the government or government-owned firms might be opening up to HR Tech firms, one would have to say even amidst the high competitive intensity, the sector is set to be significantly larger over the next 5 years. The one massive challenge will remain the missing firms from the MSME sector, which remains a problem to solve for service providers across the chain for now, not just HR. But all said and done, exciting times lie ahead for ZingHR.

ZingHR posts Rs 84 Cr revenue in FY23; losses surge 84%

EntrackrEntrackr · 1y ago
ZingHR posts Rs 84 Cr revenue in FY23; losses surge 84%
Medial

HR tech platform ZingHr has managed a 51% growth in its operating scale in the fiscal year ending March 2023. However, the company’s losses outpaced its revenue growth and neared Rs 21 crore in the same period. Tata Capital-backed ZingHR’s revenue from operations grew to Rs 84.48 crore in FY23 from Rs 55.77 crore in FY22, according to its consolidated financial statements with the Registrar of Companies (RoC). ZingHr is an HR tech platform which offers solutions such as recruitment, payroll, employee management, talent management, payroll, and others. The company claims to have over 1,100 worldwide customers with more than two million active users across 8 countries. The sale of subscription-based software was the only source of revenue for ZingHr which surged 51.48% during FY23. The company also made Rs 1.63 crore from finance income (non-operating) which tallied its total revenue to Rs 86.1 crore in the last fiscal year. Similar to other recruiting and allied servicing platforms, employee benefits expenses accounted for 55.52% of the overall expenditure. This cost surged 48% to Rs 59.2 crore in FY23 from Rs 39.8 crore in FY22. The firm’s marketing, product maintenance, professional, server, data security, and other overhead caused a 61.5% rise in its total expenditure to Rs 106.69 crore in FY23 from Rs 66.05 crore in FY22. Head to TheKredible for a detailed expenses breakup. Expenses Breakdown Total ₹ 66.05 Cr https://thekredible.com/company/zinghr/financials View Full Data To access complete data, visithttps://thekredible.com/company/zinghr/financials Total ₹ 106.69 Cr https://thekredible.com/company/zinghr/financials View Full Data To access complete data, visithttps://thekredible.com/company/zinghr/financials Server and Data Security charges Server and Data Security charges Employee Benefit Employee Benefit Travelling and conveyance Travelling and conveyance Professional charges Professional charges Selling and Marketing expenses Selling and Marketing expenses Product maintenance charges Product maintenance charges Other Expenses To check complete Expense Breakdown visit thekredible.com View full data At the end, the firm’s losses jumped by 84.4% to Rs 20.56 crore in FY23. Its ROCE and EBITDA margin worsened to -54% and -23%, respectively. On a unit level, ZingHR spent Rs 1.27 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -17% -23% Expense/₹ of Op Revenue ₹1.18 ₹1.26 ROCE -17% -54% ZingHR has raised around $13 million to date including its $10 million from Tata Capital. According to the startup data intelligence platform TheKredible, Tata Capital is the largest external stakeholder with 35.82% followed by Erasmic Venture Fund and Triton Fund. View TheKredible for the full shareholding pattern. While the high shareholding of Tata Capital might indicate a high conviction in the firm and its founders, ZingHR is up against it in a field that is both cluttered and competitive. Product differentiators are few and far between, making too much price elasticity impossible. HRtech firms might soon realize that besides the tech they offer to their clients, it is the cost of the same tech for their products that will eventually decide their future. We believe the category will find it tougher to raise capital going ahead, short of some disruptive options that are not yet visible.

Download the medial app to read full posts, comements and news.