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FarEye narrows losses by 63% amidst modest growth in FY24

EntrackrEntrackr · 2m ago
FarEye narrows losses by 63% amidst modest growth in FY24
Medial

FarEye narrows losses by 63% amidst modest growth in FY24 FarEye recorded only modest double-digit year-on-year growth in operating revenues for the fiscal year ending March 2024. However, it significantly reduced its losses, cutting them by nearly two-thirds during the same period. FarEye’s revenue from operations rose by 13% to Rs 157 crore in FY24 from Rs 139 crore in FY23, according to its consolidated financial statements recently filed with the Registrar of Companies (RoC). This marks a sharp slowdown from the 40% year-on-year growth the Tiger Global-backed company reported in FY23. FarEye provides software solutions to manage large logistics platforms’ supply chain and delivery across manufacturing, e-commerce et al. The sale of logistics services was the sole source of revenue for the company. The cost structure saw a dramatic reset as employee benefit expenses fell 39% to Rs 153 crore in FY24. Information technology expenses decreased by 6% to Rs 46 crore, while legal charges and advertising expenses shrank by 43% and 60% to Rs 23 crore and Rs 8 crore, respectively. Other overheads also contracted by 22% to Rs 39 crore in FY24. Overall, FarEye’s total expenses dropped by 34% to Rs 269 crore in FY24, from Rs 410 crore in the previous fiscal year. The stringent cost controls helped the company to bring down its losses by 63% to Rs 89 crore in FY24, a sharp improvement from Rs 243 crore loss in FY23. Its ROCE and EBITDA margin improved to -26.82% and -45.83% respectively. On a unit basis, FarEye spent Rs 1.71 to earn a rupee of revenue in FY24, a huge improvement from Rs 2.95 in FY23. The Noida-based firm’s current assets stood at Rs 372 crore, out of which Rs 305 crore are in cash and bank balance. According to TheKredible, FarEye has raised a total of approx $152 million of funding till date, having TCV, Fundamentum, Eight Roads Ventures and Elevation Capital as its lead investors. The company’s co-founders Kushal Nahata and Gautam Kumar together own 13% of the company. An underperformer by any stretch, FarEye’s struggles will worry investors who invested on the promise of opportunities in the booming logistics sector. With its focus on last mile solutions, FarEye has picked a particularly promising niche to target, with over 30% of costs linked to the last mile delivery. However, costs have been consistently high due to a global footprint, and sales have simply not grown as fast as it would have wished. How FY25 goes, considering global disruptions in markets and consequently, with FarEye’s clients both present and potential, is anyone’s guess. We wouldn’t be expecting a sharp change in trajectory anytime soon therefore. With adequate cash balances, the firm certainly has no reason to stress, but another ordinary year will mean it has not really made a worthwhile impact even after a dozen years in the market. That will affect the possibility of further backing as well as valuations in no small way. FarEye needs to see the risks getting closer.

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Eruditus clocks Rs 3,733 Cr revenue in FY24, narrows losses by 83%

EntrackrEntrackr · 3m ago
Eruditus clocks Rs 3,733 Cr revenue in FY24, narrows losses by 83%
Medial

Eruditus clocks Rs 3,733 Cr revenue in FY24, narrows losses by 83% Global edtech company Eruditus recorded modest year-on-year growth in its operating revenue, crossing the Rs 3,700 crore ($448 million) mark in the fiscal year ending June 2024. The Mumbai-based firm narrowed its losses by over 83% during the same period. Compared to FY23, the firm’s operating scale grew by 12% to Rs 3,733 crore, according to its annual financial statement sourced from Singapore. Eruditus follows a financial year that runs from July to June. The firm appears to be ahead of the leading edtechs, with revenue nearly 1.8 times that of PhysicsWallah and more than double that of upGrad. PhysicsWallah reported Rs 2,015 crore revenue in FY24 whereas upGrad registered Rs 1,487 crore revenue in the same period. Eruditus offers education across more than 80 countries to over a million learners. It partners with over 80 universities across the United States, Europe, Latin America, Southeast Asia, India, and China. The firm didn’t offer revenue break-up across geographies. The company deferred recognition of Rs 800 crore ($96 million) in collected revenue to the last fiscal year (FY25). Eruditus made progress in controlling its expenses as its marketing expenses dipped 18.85% year-on-year to Rs 1,007 crore in FY24 from Rs 1,241 crore in FY23. Other operating expenses were down by 32.16% year-on-year to Rs 1,045 crore in FY24 from Rs 1,541 crore in FY23. The cost optimizations led to a sharp improvement in the company’s bottom line. Eruditus narrowed its adjusted EBITDA losses by 83.45% to Rs 69 crore ($8.3 million) in FY24 from Rs 417 crore ($50 million) in FY23. With backing from investors such as TPG, the Chan Zuckerberg Initiative, SoftBank Vision Fund 2, Prosus Ventures, Accel, and Peak XV, Eruditus has the capital reserve to expand its presence and offerings across markets. In October 2024, it raised $150 million in the second-largest edtech deal of the year, after PhysicsWallah’s $210 million funding. With revenue approaching $500 million and an 83% reduction in losses, the company shows a path toward sustainable growth in the edtech industry. Heading into FY25 with deferred revenue, Eruditus is on track to achieve profitability while building on its revenue base.

WheelsEye narrows losses by 71% to Rs 39 Cr in FY24

EntrackrEntrackr · 5m ago
WheelsEye narrows losses by 71% to Rs 39 Cr in FY24
Medial

WheelsEye narrows losses by 71% to Rs 39 Cr in FY24 Logistics SaaS firm WheelsEye experienced slower growth since FY22, with revenue growth flattening in FY24. The company reported a marginal 7% increase in revenue for the fiscal year ending March 2024 but successfully reduced its losses by 71% during the same period. WheelsEye’s revenue from operations grew to Rs 218.4 crore in the last fiscal year, from Rs 203.8 crore in FY23, according to its standalone financial statement sourced from the Registrar of Companies (RoC). WheelsEye provides trucking solutions for businesses and software, GPS tracking, and FASTag solutions for truck fleet operators. Revenue from the sale of services (trucking service) increased by 18.9% to Rs 129.6 crore, while revenue from the sale of products (software) grew by 7.85% to Rs 57.7 crore. Income from other sources added another Rs 31 crore. The company made an additional Rs 35 crore from interest income which pushed its total Income to Rs 253 crore in FY24. WheelsEye's largest cost component, employee benefit expenses, dropped by 28.72% to Rs 135 crore. The cost of materials increased slightly by 3.43% to Rs 93.6 crore, while commissions paid decreased by 9.64%, standing at Rs 7.5 crore. Miscellaneous expenses for the last fiscal year amounted to Rs 56.9 crore. In the end, WheelsEye managed to reduce its overall expenses by 17.23%, bringing them down to Rs 293 crore in FY24. This cost optimization contributed to a 71% reduction in net loss, with losses narrowing to Rs 39 crore in FY24. The company also reported improved financial ratios, with its ROCE improving to -44.85% and EBITDA margin rising to -13.76%. Cost efficiency improved as well, with the company spending Rs 1.34 to earn a rupee in FY24. On the asset side, WheelsEye recorded Rs 186 crore in current assets for FY24, which included Rs 142 crore in cash and bank balances. According to the startup data intelligence platform, TheKredible, Wheelseye's parent entity is situated in the USA holding 99.9% of the Indian entity with the name Wheelseye Technology INC. The reduction in losses would be a welcome development at WheelsEye, probably something that has caused the slowdown in growth as well. The effort indicates a push to seek public market access perhaps, even as the firm remains well placed to seek growth again soon. In the past year, seemingly improving efficiency in logistics has led to a slowdown in growth within many firms in the category, something that should correct soon for WheelsEye as well.

Vahdam Teas narrows losses by 68% to Rs 18 Cr in FY24

EntrackrEntrackr · 6m ago
Vahdam Teas narrows losses by 68% to Rs 18 Cr in FY24
Medial

Direct-to-consumer (D2C) tea brand Vahdam experienced modest double-digit growth during the last fiscal year. Despite this, the company significantly improved its unit economics by reducing losses by 68%, bringing them down to under Rs 20 crore. Vahdam Teas’ revenue from operations grew by 10.6% to Rs 225.2 crore in FY24 from Rs 203.6 crore in FY23, as per its consolidated financial statement filed with the Registrar of Companies (RoC). Vahdam Teas directly sources premium tea and spices from farms and estates across India. It sells these products to customers both locally and internationally, including in the US, Canada, and Europe, through its own website and online marketplaces. Product sales contributed 99% of Vahdam's operating revenue. Geographically, the USA remained the primary revenue driver, accounting for 68.5% of the total operating revenue, with a 12% growth to Rs 154.2 crore. Revenue from India grew by 18% to Rs 14.84 crore, while Europe and the rest of the world contributed Rs 37.4 crore and Rs 18.8 crore, respectively, showing steady growth of 5-6%. The company made an additional Rs 10 crore from non-operating revenue, which pushed its total revenue to Rs 235 crore in FY24. On the expense side, Vahdam curtailed major costs. Advertising expenses, one of its significant outlays, were reduced by 18.9% to Rs 50 crore in FY24. Freight and forwarding charges also declined by 7% to Rs 68 crore. Meanwhile, the cost of materials remained stable at Rs 47 crore, and employee benefit expenses rose by 18.4% to Rs 29 crore. Other overheads stood at Rs 58.9 crore. Overall, the company's total expenses fell by 4.7% to Rs 253 crore in FY24, from Rs 265.5 crore in FY23. The Delhi based firm’s losses declined by 68% to Rs 17.7 crore in FY24 from Rs 55 crore in FY23. Its ROCE and EBITDA margin stood at -13.2% and -4.26%, respectively. Its expense-to-earning ratio stood at Rs 1.12. As of March 2024, the firm reported Rs 142 crore of current assets including Rs 83 crore of cash and bank balance. According to TheKredible, Vahdam Teas has raised a total of $39 million in funding till date, having Fireside Ventures, Sixth Sense Ventures and IIFL Asset Management as its lead investors.

FarEye spent Rs 361 Cr to earn Rs 139 Cr in FY23

EntrackrEntrackr · 1y ago
FarEye spent Rs 361 Cr to earn Rs 139 Cr in FY23
Medial

SaaS-based logistics management platform FarEye showcased a modest 42% year-on-year growth during the fiscal year ended March 2023 but the firm’s losses worth Rs 243 crore flattened from the previous fiscal year but remained high. FarEye’s revenue from operations grew 41.8% to Rs 139 crore in FY23 from RS 98 crore in FY22, its consolidated financial statements filed with the Registrar of Companies (RoC) show. FarEye provides software solutions to manage large logistics platforms’ supply chain and delivery across manufacturing, e-commerce et al. The sale of logistics services was the sole source of revenue for the company. Besides operating activities, the $150 million round helped FarEye to make Rs 27 crore from interest on investments (non-operating) which took its total collection to Rs 166 crore in FY23. Like other technology startups, its employee benefits accounted for 61.2% of the overall expenditure. This cost grew only 8% to Rs 251 crore in FY23 from Rs 232 crore in FY22. Its information technology, traveling, legal-professional, advertising, repair, rent, and other overheads catalyzed the FarEye’s overall expenditure to Rs 410 crore in FY23 from Rs 361 crore in FY22. FarEye’s prudent expense management helped the Microsoft-backed firm to register a mere 4.7% increase in its losses to Rs 243 crore in FY23. Its ROCE and EBITDA margin stood at -60% and -142.2%, respectively. On a unit level, FarEye spent Rs 2.95 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -176% -142.2% Expense/₹ of Op Revenue ₹3.68 ₹2.95 ROCE -36% -60% FarEye’s total current assets stood at Rs 438 crore including current investments and cash/bank balance during FY23. FarEye has raised over $150 million across rounds and was valued at $400 million in its last fundraiser. According to the startup data intelligence platform TheKredible, TCV is the largest stakeholder with 13.74% followed by Elevation Capital. As per Fintrackr estimates, its enterprise value to revenue multiple was 21X at the end of FY23. While there are firm indications that the firm has turned, or is close to turning the corner as far as margin improvement goes, Fareye’s backers would know that much could go wrong from here as well. With FY24 over, the firm would have done well to not only maintain the growth rate from FY23, but also keep expenses in control as it did previously. Any major slip up here will lead to serious questions about it’s long term viability, leading to an adverse impact on the existing business sooner than later.

Redcliffe Labs crosses Rs 350 Cr revenue in FY24, narrows losses significantly

EntrackrEntrackr · 7m ago
Redcliffe Labs crosses Rs 350 Cr revenue in FY24, narrows losses significantly
Medial

Online diagnostic platform Redcliffe, backed by Leapfrog Investments, reported modest growth during the fiscal year ending March 2024, achieving a 28% reduction in losses, largely attributed to a significant cut in advertising and material costs. Redcliffe’s revenue from operations grew by 11% to Rs 348.38 crore in FY24 from Rs 313.86 crore in FY23, as per its consolidated financial statements sourced from the Registrar of Companies (RoC). Redcliffe Labs operates a network of laboratories specializing in pathological testing across various branches of biochemistry and radiology. Around 98% of its operating revenue came from these services, contributing Rs 341.02 crore in FY24. The sale of products and other operating income accounted for Rs 2.16 crore and Rs 5.20 crore, respectively, during the last fiscal year. The company’s total income crossed Rs 353 crore in FY24 with other non-operating income worth Rs 5.3 crore including interest income and excess provisions written back. The Noida-based company’s advertising costs fell by 45% to Rs 65.38 crore, and material costs, which declined by 15% to Rs 106.31 crore in FY24. However, there was a notable increase in laboratory test charges and depreciation costs which grew by 62.2% and 3X respectively. Overall, the company successfully controlled its total expenses, which dropped 14% to Rs 556.16 crore in FY24 from Rs 647.30 crore in FY23. In the end, the company managed to decrease its losses by 28% to Rs 250 crore in FY24 from Rs 345 crore in FY23. Its ROCE and EBITDA margin stood at -544.68% and -57.55%, respectively. On a unit basis, Redcliffe Labs spent Rs 1.6 to earn a rupee in FY24. Redcliffe recorded cash and bank balances of Rs 15.87 crore and had current assets worth Rs 89.64 crore as of FY24. According to TheKredible, Redcliffe Labs has amassed total funding of $113 million to date, including investments from LeapFrog. The company recently secured $42 million in a Series C funding round and acquired Bengaluru-based Celara Diagnostics for approximately $7 million. Entrackr exclusively reported the development. Among venture-funded companies, Redcliffe competes with PharmEasy-owned Thyrocare, Healthians, and 1mg. Tata 1mg’s revenue from operations increased to Rs 1,968 crore in FY24 from Rs 1,627 crore in FY23 while Healthians achieved EBITDA profitability with Rs 243 crore revenue in FY24. Thyrocare, which is a public company, reported 20% jump in revenue to Rs 177.4 crore in Q2 FY25 with a profit after tax of Rs 26.4 crore. While founded in 2018, Redcliffe Labs saw real interest, and backing for its plans in the year after Covid struck, when diagnostic labs were considered as good as money printing machines by some investors. That has meant the usual spike in funding, followed by the struggle we are seeing in the past two years, as momentum has all but died out, and much like edtech, the legacy players including hospitals have fought back to reclaim their space. On a smaller base as compared to its peers, Redcliffe’s topline growth remains unimpressive, and the bottomline pressure will continue to hurt. While it has done its own share of acquisitions to buy its way out of stagnation, that has clearly not worked, to no one’s surprise. The whole category faces a challenge of growth today, even if the overall size is much much larger than pre-2020, and looks set to remain that way. The only issue is the scramble for share among many more players, including those who raised money at hefty post-covid valuations, making growth difficult. Despite many promises, no firm has stood out for a breakthrough offering like faster speed, lower costs or specialised accurate diagnosis, to stand out. Fy25 promises to be yet another year of attrition, and for Redcliffe, the best hope might yet remain a respectable acquisition by a larger player, than trying to cut its own pathway ahead.

Practo delivers 3,500 Cr GMV in FY24; narrows EBITDA losses by 82%

EntrackrEntrackr · 6m ago
Practo delivers 3,500 Cr GMV in FY24; narrows EBITDA losses by 82%
Medial

Practo surpassed a GMV (gross merchandise value) of over Rs 3,500 crore in the fiscal year ending March 2024. The company also recorded a 22% year-on-year increase in operating revenue, while operating EBITDA losses reduced by 82% during FY24. Practo’s revenue from operations increased to Rs 240 crore in FY24, reflecting a 22% increase when compared to FY23, the company’s press release shows. Practo helps patients find and connect with the right healthcare providers. It is a platform to find quality & verified healthcare services enabling patients to make informed decisions through an array of processes such as audits of facilities, verification of doctors credentials, merit-based scoring system for providers, patient reviews etc. It also provides software for hospitals and clinics to improve the efficiency of facilities. According to the blog post on the company’s website, it has served over 54 million patients across 642 cities and has done more than 600 healthcare establishment (hospital) audits during the previous fiscal. Practo’s focused approach to its core India business resulted in a 68% CAGR (compound annual growth rate) between FY22 and FY24, while its contribution margin improved significantly, rising from -1% in FY22 to 40% in FY24, according to the press release. “Our goal has always been to improve healthcare outcomes while building a sustainable business. Our sharp focus on the core business has driven exceptional results. Practo is excited to continue this momentum, with ambitious plans for growth with profitability in the coming year”, Shashank ND, Co-founder and CEO, of Practo, added. The growth and controlled expenditure helped Practo to reduce its EBIDTA losses by 82% to Rs 17 crore in FY24 from Rs 99.4 crore in FY23. As per the company, the last quarter (Q4) of FY24 was profitable and claimed profitability over the preceding 12 months ending September 2024. Practo is also exploring global expansion to extend its healthcare services beyond India. Practo has raised a total of $179 million to date from investors including Peak XV Partners, Matrix Partners (Z47), Tencent, and AIA. It competes with Pristyn Care-owned Lybrate, Medibuddy, and Healthians, among others.

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