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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 · 2m 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.

Vedantu posts Rs 153 Cr revenue in FY23; cuts losses by 46%

EntrackrEntrackr · 1y ago
Vedantu posts Rs 153 Cr revenue in FY23; cuts losses by 46%
Medial

Edtech company Vedantu has released its financial results for the fiscal year ending March 2023. The Bengaluru-based firm faced challenges in scaling, with its revenue dropping by 7.8% in FY23. However, the company managed to control its losses by 46% during the same period. Vedantu’s revenue from operations decreased by 7.8% to Rs 153 crore in FY23 from Rs 166 crore in FY22, its consolidated financial statements accessed from the Registrar of Companies (RoC)show. Income from online tutoring of various courses accounted for 94% of its total operating revenue which declined 13.3% to Rs 144 crore in FY23. The rest of the collections comes from the sale of books, hostel fees, and e-learning project income in FY23. The company also made Rs 22 crore from interest and gain on financial assets tallying its total income to Rs 175 crore in FY23. Similar to other large edtech startups, its employee benefits emerged as the largest cost center forming 56.7% of the total expenditure which declined by 35.8% to Rs 314 crore in FY23. The firm’s spending on legal, advertising cum promotional, training, information technology, and overheads pushed its overall expenditure to Rs 553 crore in FY23 from Rs 888 crore in FY22. See TheKredible for the detailed expense breakup. Despite the decline in scale, the Tiger Global-backed company managed to control its advertising and employee benefits which led Vedantu’s losses to decrease by 46.4% to Rs 373 crore in FY23 from Rs 696 crore in FY22. Its ROCE and EBITDA margins stood at -68% and -198.9% respectively. On a unit level, it spent Rs 3.61 to earn a rupee in FY23. FY23-FY24 FY22 FY23 EBITDA Margin -356.97% -199.30% Expense/₹ of Op Revenue ₹5.35 ₹3.62 ROCE -118.31% -68.44% Vedantu has not been able to raise a new round since its last equity funding in September 2021. The company also turned unicorn in the $100 million Series E round. In 2022, the company faced back to back firings and laid off more than 1,000 employees across three-four phases. The company also took over Deeksha, Pedagogy and Instasolv in the 2021-22 period. For Deeksha’s acquisition, it spent around $40 million. In December, Vedantu announced its expansion plan to open more than 30 offline centers for JEE, and NEET in multiple cities across the country.

Four-year-old Wiz Freight posts Rs 1,243 Cr revenue in FY23

EntrackrEntrackr · 1y ago
Four-year-old Wiz Freight posts Rs 1,243 Cr revenue in FY23
Medial

Digital supply chain startup Wiz Freight’s growth has been explosive in the last two reported fiscal years as its scale skyrocketed to Rs 1,243 crore in FY23 from Rs 18 crore in FY21. However, the Tiger Global-backed company needed to power it with higher expenses to chase scale and posted a loss of Rs 90 crore in FY23 against Rs 8 crore profits in FY22. On a year-on-year basis, Wiz Freight’s revenue from operations surged 3.8X to Rs 1,243 crore in FY23 from Rs 327 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. Founded in 2020, Wiz Freight provides a platform for exporters and importers to book and manage their cross-border shipments. Income from freight forwarding and warehousing was the sole source of revenue for the company. The firm also made Rs 18 crore from interest income tallying its total income to Rs 1,261 crore in FY23. Wiz Freight’s direct cost which includes freight and warehousing charges formed 82% of the overall expenditure. To the tune of scale, this cost surged 3.8X to Rs 1,103 crore in FY23 from Rs 288 crore in FY22. Its employee benefits, legal/professional, traveling, finance, advertising, and other overheads took the overall expenditure up by 321% to Rs 1,347 crore in FY23 from Rs 320 crore in FY22. Check TheKredible for the complete expense breakdown. Expense Breakdown Total ₹ 320 Cr https://thekredible.com/company/wiz-freight/financials View Full Data To access complete data, visithttps://thekredible.com/company/wiz-freight/financials Total ₹ 1347 Cr https://thekredible.com/company/wiz-freight/financials View Full Data To access complete data, visithttps://thekredible.com/company/wiz-freight/financials Cost of material consumed Cost of material consumed Employee benefit Employee benefit Legal professional Legal professional Travelling conveyance Travelling conveyance Finance cost Finance cost Advertising Advertising Others To check complete Expense Breakdown visit thekredible.com View full data In pursuit of expansion, the Chennai-based company incurred a loss of Rs 90 crore in FY23, contrasting with profits of Rs 8 crore in FY22. Its ROCE and EBITDA margin stood at -21% and -2.3% respectively. On a unit level, it spent Rs 1.08 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin 3% -2.3% Expense/₹ of Op Revenue ₹0.98 ₹1.08 ROCE 5% -21% WizFreight has raised around $55 million to date including its $34 million round led by Tiger Global in March 2022. According to the startup data intelligence platform TheKredible, Tiger Global is the largest external stakeholder with 14.15% followed by Axilor and Foundamental. In January, Nippon Express Holding also acquired a minority stake in the firm, indicating the strong interest it has been able to generate and the possibility of ready access to future funding. As we mentioned after their FY22 results, Wix Freight has a lot going for it in terms of experience of the team, their specific niche and potential market. The high growth has probably made losses acceptable for investors, even as the firm is probably not done with the fund raising yet. With a clear focus on using acquisitions to support growth where possible, it will want the dry powder to move where such an opportunity presents itself.

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