News on Medial

Related News

Quikr posts Rs 51 Cr revenue in FY23, losses shrink 62%

EntrackrEntrackr · 1y ago
Quikr posts Rs 51 Cr revenue in FY23, losses shrink 62%
Medial

Quikr, the online marketplace and classified platform, experienced a drop in scale from Rs 191 crore in FY19 to Rs 110 crore in FY20. This declining trend continued until FY22. The Bengaluru-based firm, however, has recently shown signs of stability and resilience with its revenue growing for the first time in the last three years in FY23. Additionally, the former unicorn also managed to bring down its losses by a significant margin during the period. Quikr’s revenue from operations marginally grew 4.7% to Rs 51.36 crore during the fiscal year ending March 2023 as compared to Rs 49.07 crore recorded in FY22, as per the company’s consolidated financial statements with the Registrar of Companies. Quikr made the majority of its revenue from lead referral fees followed by advertising, both verticals collectively contributed to around 90% of revenue in FY23. The remaining sum was collected via commissions, management consultancy services, business support, and other operating activities. The company also earned Rs 2 crore from interest and gains on other financial assets (non-operating income). Considering this, the total income of the company stood at Rs 53.38 crore in FY23. On the cost side, employee benefit was the largest cost expense for the company. Which however shrank 17% to Rs 41.5 crore in FY23 from Rs 50 crore in FY22. IT costs including web hosting and payment gateway also dwindled 43% to Rs 3.5 crore during the year from Rs 6.13 crore in FY22. The company also cut down its legal, promotional, and other expenses, akin to which, the overall expenditure dwarfed 27% to Rs 61.36 crore in FY23. The total expenditure was Rs 84 crore during the previous fiscal year. For a complete expense breakdown and year-on-year financial performance and more information about the company, visit TheKredible. The cost-cutting measures taken by the company during the year can also be seen in its bottom line which improved significantly. Quikr’s losses declined 62% to Rs 7.98 crore during FY23 in comparison to Rs 20.98 crore in FY22. Additionally, the company’s outstanding losses stand at Rs 3,077 crore at the end of FY23. Operating cashflows also turned green (positive) to Rs 2.57 crore in FY23 against Rs 29.23 crore (negative) in the previous year. The EBITDA margin and ROCE of the company strengthened to -3.52% and -3.87%, respectively during the period. On a unit level, Quikr spent Rs 1.19 to earn a rupee of operating revenue in FY23.

Quikr posts first-ever profit in FY24 but left with only Rs 20 Cr in current assets

EntrackrEntrackr · 1m ago
Quikr posts first-ever profit in FY24 but left with only Rs 20 Cr in current assets
Medial

Quikr’s revenue from operations dropped 12% to Rs 45 crore in FY24 from Rs 51 crore in FY23, according to its consolidated financial statement sourced from the Registrar of Companies (RoC). Once one of India’s early unicorns, horizontal classifieds platform Quikr has experienced a consistent year-on-year decline in revenue and is now barely clinging to survival, operating at a drastically reduced scale. While the Bengaluru-based company reported a 12% drop in operating revenue, the silver lining is that it turned profitable for the first time, achieving a profit-to-revenue ratio of 1:22 in the fiscal year ending March 2024. Quikr’s revenue from operations dropped 12% to Rs 45 crore in FY24 from Rs 51 crore in FY23, according to its consolidated financial statement sourced from the Registrar of Companies (RoC). The bulk of Quikr’s revenue, accounting for 86% of total income, came from lead referral fees and advertising. Lead referral fees generated Rs 22 crore, while advertising services brought in Rs 17 crore. Commission and other service income contributed Rs 3 crore each. The firm earned an additional Rs 11 crore from provision write-backs and gains on financial assets, taking its total income to Rs 56 crore in FY24. On the expense side, employee benefit expenses remained the largest cost center, accounting for 69% of the expense. To the tune of scale, this cost was trimmed by 10% to Rs 37 crore. Interestingly, spending on advertising, while still relatively small, tripled to Rs 3 crore from Rs 1 crore in FY23. Depreciation and amortization expenses fell drastically from Rs 5 crore in FY23 to just Rs 15 lakh in FY24, significantly reducing non-cash expenses. Overall, Quikr managed to cut total costs by 11.5% to Rs 54 crore in FY24 from Rs 61 crore in the previous year. The company’s ability to bring down operating costs along with other revenue helped Quikr to gain profitability in FY24. The Tiger Global-backed firm recorded a profit of Rs 2 crore in contrast to Rs 8 crore loss in FY23. Its ROCE and EBITDA margin improved to 1.69% and 5.36%, respectively. Quikr spent Rs 1.20 to earn a rupee of operating revenue in FY24. As of March 2024, the Bengaluru-based firm reported current assets of Rs 20 crore for FY24, including Rs 2 crore in cash and bank balances. This marks an 80% drop from Rs 11 crore in FY23, raising concerns about liquidity, cash flow utilization, or a potential shift in capital deployment strategy. According to startup data intelligence platform TheKredible, Quikr has raised a total of $380 million in funding to date, which is a staggering 52 times its FY24 revenue. Its prominent backers include Warburg Pincus, Kinnevik, Tiger Global, and Matrix Partners India (now Z47). With most investors having written off their investments in the firm, the only question remaining now is if it can survive as some sort of sustainable business. While perhaps enriching for many personally, such a spectacular burnout does leave its mark on the ability to pivot to new realities, something Quikr consistently failed to do. For a firm that doubled down harder with even more money spent every time it faced a setback, the new reality is to use the collective experience of a decade and more to monetise, at however small a scale. And do it profitably. Will the present reserves be enough to turn it around for good? We wouldn’t count on it, the profits notwithstanding.

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