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Elevation-backed The Souled Store turns profitable in FY24

EntrackrEntrackr · 9m ago
Elevation-backed The Souled Store turns profitable in FY24
Medial

The Souled Store, a direct-to-consumer pop culture brand, witnessed impressive growth with a 54.5% year-on-year increase in the fiscal year ending March 2024. The Xponentia Capital-backed company also achieved profitability during this period. The Souled Store's revenue from operations grew to Rs 360 crore in FY24 from Rs 233 crore in FY23, its annual financial statements filed with the Registrar of Companies (RoC) show. Founded in 2014, The Souled Store designs, manufactures and sells apparel inspired by pop culture, featuring themes from superheroes, movies, and TV shows. Its product lineup includes footwear, books, mobile covers, notebooks, mugs, and more. According to the company's website, it has 18 stores across India. Revenue from the sale of products in stores and online accounted for 98.6% of the revenue, which increased 55% to Rs 355 crore in FY23. The rest of the operating income comes from membership fees. The Souled Store also added Rs 5 crore from interest on deposits and gain on current investment which tallied its overall revenue to Rs 365 crore in FY24, compared to Rs 236 crore in FY23. For the D2C brand, the cost of procurement accounted for 42.2% of the total expenditure. To the tune of scale, this cost grew by 68.5% to Rs 150 crore in FY24. Its employee benefits and rent also increased by 34.5% and 77.8% respectively in the previous fiscal year. The Mumbai-based firm spent Rs 68 crore on advertising in FY24. Legal, freight, job work charges, and other overheads increased the overall expenditure by 40.3% to Rs 355 crore in FY24 from Rs 253 crore in FY23. Over 50% YoY growth coupled with controlled expenditure led the firm to register a net profit of Rs 18 crore in FY24 compared to a loss of Rs 16.5 crore in FY23. Its ROCE and EBITDA margins improved to a positive 6.38% and 5.21% respectively. On a unit level, it spent Rs 0.99 to earn a rupee of operating revenue. At the end of FY24, the company’s total current assets stood at Rs 225 crore including the cash and bank balances of Rs 44 crore. The Souled Store has raised nearly $30 million to date, including a $16 million round led by Xponentia Capital in 2023 and a $10 million round led by Elevation in 2021. According to the startup data intelligence platform TheKredible, Elevation is the largest external stakeholder followed by Xponentia Capital.

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Leegality turns profitable with 87% revenue growth in FY24

EntrackrEntrackr · 1y ago
Leegality turns profitable with 87% revenue growth in FY24
Medial

Document infrastructure platform Leegality maintained its growth trajectory in the fiscal year ending March 2024. After achieving 100% revenue growth in FY23, the IIFL Fintech Fund-backed company reported an 87% spike in scale in the latest fiscal year. Leegality’s revenue from operations jumped to Rs 62 crore in FY24, as per its financial statement filed with the Registrar of Companies. Leegality enables businesses to digitally transform document logistics, eliminating physical paperwork in the lending ecosystem by providing digital infrastructure, including eSign and eStamping solutions. The sale of these services was the only source of collection for the firm in FY24. Leegality additionally earned Rs 4.2 crore from interest on bank deposits, bringing its total income to Rs 66.41 crore in FY24, a substantial increase from Rs 35.51 crore in FY23. Looking at expenses, employee benefit was the major contributor, accounting for 56% of total costs, increasing by 62.5% to Rs 36.4 crore in FY24 from Rs 22.4 crore in FY23. E-Sign Charges made up 15% of total expenses, rising 2.3 times to Rs 9.5 crore.Tech infrastructure formed 10% of expenses, growing by 55% to Rs 6.6 crore. Other costs, including stamp processing, advertising, and legal fees, brought total expenses to Rs 65 crore during the last fiscal year, reflecting a 66% increase from Rs 39 crore in FY23. With significant revenue growth, Leegality turned profitable in FY24, reporting a profit of Rs 1.11 crore, compared to a loss of Rs 3.5 crore in FY23. Its ROCE and EBITDA margin stood at -2.75% and 3.33%, respectively. On a unit-basis level, the company spent Rs 1.04 to earn each rupee of operating revenue in FY24. FY23-FY24 FY23 FY24 EBITDA Margin -8.53% 3.33% Expense/₹ of Op Revenue ₹1.18 ₹1.04 ROCE -7.49% 2.75% Even though it operates in a fairly competitive space, Leegality’s turn to profitability indicates the ‘sensible’ economics within the segment. Even as more and more transactions and the documentation required are being digitised, the scope of work for Leegality and its peers will only increase, providing a clear pathway to growth. The only risk we can see is any government backed alternative like say, Digilocker which expands services to overlap with what these offer.

Amazon-backed ToneTag turns profitable after 10 years of operations

EntrackrEntrackr · 11m ago
Amazon-backed ToneTag turns profitable after 10 years of operations
Medial

After experiencing slow growth over the past two years (FY22 and FY23), contactless payment solution provider ToneTag has made a strong comeback, doubling its revenue in the fiscal year ending March 2024. By effectively cutting expenses, the Bengaluru-based company has also achieved profitability for the first time since its inception in 2014. ToneTag’s revenue from operations jumped 111.7% to Rs 47.78 crore during FY24 in contrast to Rs 22.57 crore generated in FY23, its financial statement sourced from the Registrar of Companies shows. ToneTag offers three product categories for businesses—voice commerce, online store, and in-store solutions—that cater to retail and F&B businesses. The firm enables businesses to integrate voice-powered interactions for shopping, ordering, and payment through its Oyeti platform. For customers, its VoiceSe UPI payment service facilitates voice-based transactions that work without internet access. The company collected Rs 30.87 crore via upfront customization services in FY24 accounting for 64.6% of the total operating revenue during the year. Revenue from smart stores dwindled 53.8% to Rs 10.33 crore year-on-year (YoY) from Rs 22.36 crore. The company also generated revenue of Rs 4.14 crore from monthly fees (from businesses), Rs 1.63 crore via one-time integration fees, and Rs 81 lakh through license fees. Moving toward the expense side, employee benefits formed 49% of the total expenditure. This cost remained almost flat at Rs 13.22 crore during the last fiscal year (FY24). Finance cost ballooned over 5X to Rs 2.49 crore while telephone cum IVR charges surged 143.8% to Rs 2.17 crore during the period. Overall, the company spent Rs 26.95 crore in FY24, 9.3% less compared to FY23 (Rs 29.70 crore). Followed by an impressive growth in scale and controlled expenditure, ToneTag turned profitable and booked Rs 20.94 crore profits during FY24 against Rs 6.12 crore loss in FY23. Operating cash outflows, however, increased 73.6% to Rs 2.24 crore in FY24. ToneTag’s improved bottom line also helped it to register positive EBITDA margin and ROCE which bettered to 54.18% and 30.09%, respectively. On a unit level, the firm spent Re 0.56 to earn a rupee of operating revenue in the last fiscal year. At the end of FY24, the company reported Rs 1.6 crore in cash and bank balances. However, its current assets nearly tripled to Rs 41.94 crore, driven by a significant spike in trade receivables during the period. According to media reports, ToneTag is looking to raise $50 million in primary and secondary funding from Iron Pillar and other investors. As per TheKredible, ToneTag has raised over Rs 90 crore ($11 million) to date and was valued at nearly Rs 800 crore ($96 million) in its last round. The company, which is backed by Amazon, Reliance, and 3one4 Capital, hasn’t raised a new round for more than six and a half years. Among contactless payment solution providers, ToneTag competes with Paytm, PhonePe, PineLabs, BharatPe, and MobiKwik et al.

Capillary Technologies turns profitable in FY25

EntrackrEntrackr · 5m ago
Capillary Technologies turns profitable in FY25
Medial

Capillary Technologies turns profitable in FY25 Customer loyalty and engagement solutions provider Capillary Technologies has filed its Draft Red Herring Prospectus (DRHP) with SEBI as it gears up for a public listing. The document offers a detailed view into the company’s financials, revealing a sharp turnaround in FY25. Capillary Technologies’ operating revenue rose 14% to Rs 598 crore in FY25, compared to Rs 525 crore in FY24, as per data disclosed in the DRHP. Capillary Technologies follows a B2B SaaS model, earning revenue through subscriptions and services for its loyalty and customer engagement platform used by global brands to enhance retention and personalization. Most of the company’s revenue is through subscription-based software services, which contributed over 80% of the total, growing nearly 20% year-on-year to reach Rs 481 crore in FY25, from Rs 402 crore in FY24. The remaining Rs 117 crore came from other streams such as services and integration-linked fees. From a regional perspective, North America emerged as Capillary’s largest revenue contributor, accounting for 56.6% of the total revenue in FY25, up from 48% in the previous fiscal. EMEA (Europe, Middle East, and Africa) made up 19%, while Asia-Pacific’s share declined to 24% from 33% in FY24. While a detailed expense breakdown isn’t disclosed, the company’s return to profitability suggests improvements in cost structure and stronger monetization of its offerings. The company posted a net profit of Rs 14 crore in FY25, a significant improvement from the Rs 68 crore loss in FY24. Meanwhile, its EBITDA stood at Rs 78.5 crore in FY25, with a margin of 13%. As Capillary moves closer to its IPO, the shift to profitability will likely be a key narrative for investors looking at the company’s long-term potential and scalability.

ZingHR turns profitable in FY25, revenue grows 21%

EntrackrEntrackr · 1m ago
ZingHR turns profitable in FY25, revenue grows 21%
Medial

ZingHR turns profitable in FY25, revenue grows 21% Cloud-based HRtech firm ZingHR has continued its growth momentum and achieved profitability in FY25 from a loss of Rs 7 crore in the previous fiscal year. ZingHR’s revenue from operations grew 21% to Rs 150 crore in FY25 from Rs 124 crore in FY24, according to its consolidated financial statements filed with the Registrar of Companies (RoC). 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. Zing HR’s employee benefits remained the largest cost component, accounting for 53% of total expenses. To the tune of scale, this cost remained stable at Rs 80 crore in FY25 as compared to Rs 81 crore in FY24. Among other major expenses, server and data security charges rose 42% to Rs 17 crore, while legal and professional fees nearly doubled to Rs 17 crore. Product maintenance charges grew 22% to Rs 11 crore, and rent expenses increased by 33% to Rs 4 crore. Overall, the company’s total expense rose 13% to Rs 150 crore in FY25 from Rs 133 crore in FY24. With the help of revenue growth, the company managed to achieve profitability. ZingHR posted a profit of Rs 1 crore in FY25 in contrast to a loss of Rs 7 crore in FY24. Its ROCE and EBITDA margin improved to 1.21% and 0.80% respectively. On a unit basis, ZingHR spent Re 1 to earn a rupee of revenue during the year, an improvement from Rs 1.07 in FY24. The company’s total assets grew to Rs 80 crore in FY25, from Rs 71 crore in the preceding year, while its current assets were valued at Rs 58 crore. Cash and bank balances stood at Rs 8 crore as of March 2025. ZingHR has raised $14 million in funding to date, with Tata Capital as its lead investor, holding a 35.82% stake. Competing in the same space as ZingHR, Darwinbox’s total revenue grew to Rs 534 crore in FY25 from Rs 334 crore in FY24 as 63% of the company’s revenue comes from international markets. The company’s adjusted net loss improved by 7% over FY24 in the same period.

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