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Compliance automation startup Sprinto raises $20 Mn led by Accel

EntrackrEntrackr · 1y ago
Compliance automation startup Sprinto raises $20 Mn led by Accel
Medial

Sprinto, a compliance automation platform for SaaS companies, has secured $20 million in Series B funding round led by Accel along with participation from existing investors Elevation Capital and Blume Ventures. With this, the Bengaluru and San Francisco-based firm has raised a total of $31.8 million to date including a $10 million Series A round in February 2022. The funds will be used for R&D with a focus on intelligent automation and AI, and expansion into new markets, Sprinto said in a press release. Launched in mid-2021 by Girish Redekar and Raghuveer Kancherla, Sprinto helps SaaS companies obtain compliances, such as SOC 2, ISO27001, GDPR and HIPAA in a quick and hassle-free manner. Sprinto helps clients create a real time monitoring system that provides visibility into the processes and policies governed by compliance checklists, and tracks the status of these systems. According to the company, it has amassed more than 1,000 customers and extended its reach to over 75 countries. Majority of its client base are in the US and Europe. It also claimed to have three-fold growth in 2023. Though, the company did not disclose other financial details. In global markets, it competes with the likes of Vanta and Drata. Last week, compliance automation platform Scrut Automation announced that it raised $10 million in a Series A round. Entrackr exclusively reported the development in February.

Cyber attack hits Safexpay in FY24: revenue shrinks 67%, losses double

EntrackrEntrackr · 4m ago
Cyber attack hits Safexpay in FY24: revenue shrinks 67%, losses double
Medial

Fintrackr All Stories Cyber attack hits Safexpay in FY24: revenue shrinks 67%, losses double Mumbai-based fintech company Safexpay faced a tough fiscal year in FY24, with its revenue dropping sharply by 67% after its payment gateway was hacked in October 2023. Meanwhile, the company's losses doubled during the same period. Safexpay's operating revenue declined by 67% to Rs 88.5 crore down from Rs 269.5 crore in FY23, as per its consolidated financial statement sourced from the Registrar of Companies (RoC). Safexpay operates as a fintech company providing payment gateway solutions, digital banking, and API-based payment infrastructure for businesses, enabling secure transactions, recurring payments, and multi-currency support across various payment methods. The steep decline in revenue was mainly due to a sharp reduction in payment gateway transaction volumes, which led to a 79.57% drop in related income. Notably, the company's payment gateway was hacked, leading to significant financial and reputational damage. According to media reports, the Thane Police are investigating a Rs 16,180 crore scam linked to the breach. On the cost side, Safexpay’s total expenses decreased by 52.41% to Rs 143 crore in FY24 from Rs 300.5 crore in FY23. Employee benefit expenses fell by 17.46% to Rs 26 crore, while payment gateway charges, the firm's largest cost component, dropped by 79.57% to Rs 48 crore. Due to a hack in its core payment gateway business, legal expenses surged 5.5X to Rs 11 crore, while bad loans increased nearly tenfold to Rs 16 crore. The company also incurred a cost of Rs 21 crore after hackers breached Safexpay’s account and siphoned off the funds. Despite cost-cutting measures, Safexpay struggled to offset revenue declines, causing its net loss to widen to Rs 44 crore in FY24, compared to Rs 22 crore in FY23. Its Return on Capital Employed (ROCE) and EBITDA margin deteriorated to -186% and -42.12%, respectively. On a unit level, the firm spent Rs 1.62 to earn a single rupee in FY24. The Mumbai-based company reported current assets worth Rs 77 crore in FY24 which included Rs 10.5 crore in cash and bank balance. According to TheKredible, Safexpay has raised a total of $6 million of funding to date having Ardor Advisors and Choithram International as its lead investors. The company’s founder owns 44% of the company. The hit that Safexpay is having to endure is the kind of blow that can be fatal. Especially in the fintech business where one could argue that credibility is worth a lot more than money in the bank in this case. Safexpay faces a battle for survival no doubt, and one would have to say that the odds are lengthening unless it can find a long-term backer.

Mosambee touches Rs 240 Cr revenue in FY24; profit surges 87%

EntrackrEntrackr · 7m ago
Mosambee touches Rs 240 Cr revenue in FY24; profit surges 87%
Medial

Pine Labs-backed mobile point-of-sale (mPOS) provider Mosambee has continued to demonstrate year-on-year profitable growth. The firm increased its operating scale by over 28% in the fiscal year ending March 2024, while its profit rose by 87% during the same period. Mosambee’s revenue from operations grew to Rs 240 crore during the last fiscal year, from Rs 187 crore in FY23, its annual financial statements sourced from the Registrar of Companies (RoC) show. Mosambee is an EMV-enabled mPOS system that provides payment solutions for debit credit card transactions along with mobile-based payment options. Income derived from service rental, transaction processing, and settlement formed 68% of the total revenue which increased 52.3% to Rs 163 crore in FY24. The rest of the operating revenue generated from the sale of PoS (point of sale) devices which saw a modest 3.4% decline to Rs 77 crore in the last fiscal year, compared to Rs 80 crore in FY23. On the cost side, the cost of procurement of devices became the largest cost center forming 40% of the overall cost. This cost grew 15.3% to Rs 83 crore in FY24 from Rs 72 crore in FY23. Its employee benefit increased by 5.2% to Rs 61 crore in FY24 which includes Rs 8.7 crore as ESOP cost (non-cash). The firm’s burn on legal, technology, communication, transaction services, and other overheads pushed the total expenditure up by 19.4% to Rs 203 crore in FY24. The decent growth and controlled expenditure helped Mosambee to grow its profits by 86.7% to Rs 28 crore in FY24. Its ROCE and EBITDA margins improved to 31.25% and 23.33%, respectively. Mosambee’s expense-to-earning ratio stood at Rs 0.85 in the last fiscal year. The company has a total current assets of Rs 296 crore with cash and bank balances of Rs 13 crore during the said fiscal year. In April 2022, Pine Labs acquired a majority stake in Mosambee, boosting its valuation to over $100 million. Prior to this, in February 2022, Mosambee announced its acquisition of Benow, a digital payments and EMI technology platform. However, in March of this year, Mosambee secured a Series B funding round from Rajasthan Venture Capital Fund (RVCF) and SIDBI Venture Capital Ltd.

Wakefit posts Rs 971 Cr revenue in 9M FY25; auditor raises concern over past financials

EntrackrEntrackr · 20d ago
Wakefit posts Rs 971 Cr revenue in 9M FY25; auditor raises concern over past financials
Medial

Wakefit, a brand specializing in home and sleep solutions, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). According to the balance, Wakefit reported a revenue of Rs 971 crore for the first nine-month period of FY25, concluding on December 31, 2024. Auditors, however, raised concerns regarding the financial statements. Wakefit’s operating revenue stood at Rs 971 crore in the nine months of FY25, nearly matching the Rs 986 crore it recorded in the entire FY24. The firm’s topline was largely driven by the sale of manufactured goods, which accounted for over 97% of its operating income, standing at Rs 951 crore. Other revenue came from the sale of traded goods and other income, which pushed its total income to Rs 994 crore in the nine months of FY25. On the expense side, cost of materials was the major contributing factor, accounting for 43% of the total expense at Rs 433 crore. Employee benefits accounted for Rs 126 crore, and the firm also spent Rs 82 crore on advertising and Rs 75 crore on delivery-related expenses during the period. Other overheads, including depreciation and IT expenses, further added to the cost base. Overall, total expenses stood at Rs 1,003 crore in the nine months of FY25, as compared to Rs 1,032 crore in FY24. Wakefit reported a loss of Rs 9 crore in the nine months of FY25, as compared to a loss of Rs 15 crore in FY24. However, the company posted a positive EBITDA of Rs 76 crore, with an EBITDA margin of 7.65% in the same period. Its ROCE stood at 1.33%. On a unit level, the company spent Rs 1.03 to earn a rupee of revenue during the 9-month period and has current assets worth Rs 577 crore, including Rs 19 crore in cash and bank balances. Looking further in the DRHP, the auditors flagged issues such as mismatches between financial records and bank filings, delayed statutory payments including GST dues under dispute, absence of an internal audit system, and cash losses over the last three fiscals. In FY24, the company’s accounting software was also found lacking the mandatory audit trail feature. While these observations didn’t require changes to its reported financials, Wakefit cautioned that similar remarks in the future could impact its reputation and financial standing. The company also revealed it uses several non-GAAP financial metrics like EBITDA, adjusted EBITDA, and return on capital employed to track performance. Wakefit noted these figures may not follow standard industry definitions and might not be comparable with those reported by peers. It urged investors not to rely solely on these supplemental measures and to consider audited financials under statutory accounting norms.

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