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CoinSwitch’s parent PeepalCo revenue declines to Rs 38 Cr in FY24, losses shrink 65%

Entrackr · 1m

CoinSwitch’s parent entity PeepalCo, one of the leading cryptocurrency exchanges in India, has continued to struggle with a declining scale for consecutive fiscal years (FY23 and FY24). After an 84% dip in FY23, its operating revenue shrank by 46% in the fiscal year ending March 2024. CoinSwitch’s parent revenue from operations dropped to Rs 38 crore ($4.56 million) during FY24 as compared to Rs 70.2 crore ($8.41 million) booked in the previous fiscal year, the company’s consolidated financial statements filed by the parent entity (PeepalCo) in Singapore show. PeepalCo owns and operates two businesses: cryptocurrency trading through CoinSwitch and equities trading via Lemonn. CoinSwitch operates as a virtual digital assets (VDA) exchange aggregator, connecting buyers and sellers of digital assets. The company’s revenue comes primarily from service fees for facilitating transactions between users and third-party VDA exchanges. It also operates an electronic exchange platform, linking market makers and other large-volume traders in the VDA space. Importantly, PeepalCo generated a large chunk of revenue from investment sales, interest income, reversal of provisions on digital assets, reconciliation gains on digital assets, and others. This non-operating income stood at Rs 149.13 crore or $17.86 million in FY24. Coming to the expenditure, CoinSwitch’s parent spent the most on employee benefits which shrank 17% to Rs 208.42 crore in FY24. Computer & IT expenses also saw a dip of 19% to Rs 36.91 crore while depreciation and amortization costs went up 6.7% to Rs 18.54 crore. Overall, the company’s total expenditure declined 36.7% to Rs 318.6 crore ($38.15 million) during FY24. Followed by the cost-cutting measures, CoinSwitch managed to cut down its losses by 65% to Rs 151.4 crore ($18.13 million) in FY24 against Rs 434.2 crore in the previous year. The operating cash outflows also improved to the tune of 36.8% to Rs 95 crore. As per TheKredible, the EBITDA margin and ROCE registered at -59.10% and -7.95%, respectively. On a unit level, CoinSwitch spent Rs 8.37 to earn a rupee of operating revenue in FY24.