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WeRize’s revenue zooms 22X in last two fiscal years

EntrackrEntrackr · 1y ago
WeRize’s revenue zooms 22X in last two fiscal years
Medial

British International Investment-backed fintech platform WeRize seems to have found a stable ground across smaller cities and this could be validated from its growth trajectory in the last two fiscal years. The five-year-old firm registered a staggering 22X growth in its operating scale which rose to Rs 68.14 crore in FY23 from Rs 3.2 crore in FY21. When it comes to year-on-year growth, WeRize saw revenue from operations soiling 3.46X to Rs 68.14 crore in the fiscal year ending March 2023 from Rs 19.68 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies shows. Founded by Sachin Chopra and Himanshu Gupta, WeRize provides loans (mortgage and unsecured), group insurance to lower middle class through its own (Wortgage Finance) and third party non-banking financial institutions including Vivitri capital and InCred. Revenue from interest and services fees accounted for 84.85% of the total operating revenue. It earned Rs 33.49 crore from interest while service fee aka loan processing fee brought Rs 24.33 crore to the company’s coffers. WeRize also made Rs 4.63 crore from non-operating activities, pushing its total income to Rs 72.77 crore in FY23. Similar to most of the lending startups, employee benefit expense formed 34.98% of the overall expenditure which increased by 125.9% to Rs 28.3 crore in FY23 from Rs 12.53 in FY22. WeRize’s professional consultancy fees, commission, subscription fees, performance payouts, and other overheads took its overall expenditure up by 153.6% to Rs 80.9 crore in FY23 from Rs 31.9 crore in FY22. Head to Thekredible for detailed expense breakup. Despite a 2.5X surge in expense and increase in revenue, the company managed to cut its losses by 23.8% to Rs 8.23 crore in the last fiscal year. Its ROCE and EBITDA margin also demonstrated improvement significantly to -2% and 2.5% respectively. On a unit level, it spent Rs 1.19 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -29% 2.5% Expense/₹ of Op Revenue ₹1.62 ₹1.19 ROCE -13% -2% According to the startup data intelligence platform TheKredible, WeRize secured $15.5 million in funding in June 2022 at a post money valuation of $108 million. Kalaari Capital holds 16.09% in the firm while 3one4 Capital and Orios Venture Capital hold 13.46% and 10.18%, respectively. WeRize looks set to break even in FY24, will it maintain the growth momentum? That is the million dollar question in a market where it will get increasingly crowded as it scales. However, the possibilities in the lower income segment it has thrived in so far remain immense, especially for insurance products where it remains under penetrated. The issue has always been one of selling effectively, and building a strong narrative of use case that attracts more to the platform. WeRize will be well aware of that we are guessing, unless they seek the relative comfort of higher income, but more competitive segments. It’s a tradeoff that will define both its immediate and long term future one feels.

M2P Fintech posts Rs 440 Cr revenue in FY23, losses mount 3.35X

EntrackrEntrackr · 1y ago
M2P Fintech posts Rs 440 Cr revenue in FY23, losses mount 3.35X
Medial

Application programming interface (API) infrastructure platform M2P Fintech (formerly Yap), registered a remarkable 10.5X increase in its operating scale in the last two reported fiscal years, zooming to Rs 440.7 crore in FY23 from Rs 41.89 crore in FY21. On a year-on-year basis, M2P’s revenue from operations surged 2.26X to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. M2P Fintech provides core banking cum loan management system stack and payment tools among others. While payment solutions form 60% of its revenues, the rest of income generated from core banking biz and value added services (VAS). It claims that its solutions are being used by 1,200 firms including banks and fintechs During FY23, the company made money by providing API services, handling payment infrastructure contracts, and processing card transactions. Collection from these services spiked 2.26X to Rs 440.7 crore in FY23 from Rs 194.74 in FY22. M2P also booked an income of Rs 47.17 crore from long-term investments and net change in FVTPL (non-operating income) which pushed its total revenue of Rs 487.87 in FY23. Moving to its cost breakup, technology, card processing and co-branding expenses accounted for 58.92% of the total expenditure. This cost shot up almost 2.2X to Rs 367.23 crore in FY23. The company also burnt Rs 188.28 crore on employee benefits whereas legal-professional fees and traveling conveyance collectively cost Rs 29.28 crore in the fiscal year ending March 2023. Other notable expenses including advertising took M2P’s total expenditure to Rs 623.3 crore in FY23. As the firm prioritized growth, its losses also mounted 3.35X to Rs 134.26 crore in FY23 from Rs 40.08 crore in FY22. When it comes to ratios, its EBITDA margin and ROCE worsened to -26% and -22.5%, respectively. On a unit level, M2P Fintech spent Rs 1.41 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -17% -22.5% Expense/₹ of Op Revenue ₹1.26 ₹1.41 ROCE -7% -26% As per startup data intelligence platform Thekredible, M2P Fintech has raised debt funding of Rs 35 crore from Anicut capital. Beenext is the largest stakeholder with 13.24% while Tiger Global and Insight partners hold 8.91% and 6.48%, respectively. In January 2022, the Bengaluru-based company raised $56 million in an equity round led by Insight Partners at a valuation of $600 million.

BillDesk records Rs 2,678 Cr revenue in FY23; profits fall 5%

EntrackrEntrackr · 1y ago
BillDesk records Rs 2,678 Cr revenue in FY23; profits fall 5%
Medial

B2B fintech company BillDesk seems to have lost its momentum in the past couple of years as it fell short of securing a double-digit growth in FY23. Moreover, profits also reduced 5.1% in the fiscal year ending March 2023. BillDesk’s revenue from operations grew 9.6% to Rs 2,678 crore during FY23, as per the company’s consolidated financial statements with the Registrar of Companies. BillDesk charges fees for the processing and settlement services of electronic transactions — and collections from these services accounted for more than 70% of the total operating revenue in FY23. It also generated a significant part ~10% of its revenue from loyalty programs for its clients while the remaining part came from the sale of products (PINS and e-top-up subscriptions) and other operating activities during the last fiscal year. Furthermore, it also earned Rs 87.15 crore via interest and gain on financial assets (non-operating income), taking the overall revenue to Rs 2,765 crore in FY23. As per the startup intelligence platform TheKredible, BillDesk spent the most on technical services (bank fees and service charges) which formed 83.8% of the total expenditure. This cost went up 9.3% to Rs 2,146 crore during FY23 from Rs 1,963.6 crore in FY22. Employee benefits expenses increased 35.4% to Rs 245 crore during the last fiscal year from Rs 181 crore in FY22. The company’s burn on data, communication, legal, and information technology catalyzed its total expenses by 11.6% to Rs 2,561 crore in FY23. Head to TheKredible for the complete expense breakdown. Coming to the bottom line of the company, its profits shrank marginally (5.1%) to Rs 141.91 crore in FY23 against Rs 149.6 crore in FY22. Followed by the rising expenses and reconciliation in profits, BillDesk’s operating cash flows turned negative to Rs -121.63 crore in FY23. In FY22, it recorded a positive cash flow of Rs 39.83 crore. On a unit level, BillDesk spent Re 0.96 to earn a rupee of operating revenue during FY23. The company’s EBITDA margin and ROCE also worsened to 9.23% and 7.75% during the same period. FY22-FY23 FY22 FY23 EBITDA Margin 10.21% 9.23% Expense/₹ of Op Revenue ₹0.94 ₹0.96 ROCE 8.81% 7.75% BillDesk competes with Razorpay, Infibeam Avenues, and PayU among other payment gateways. Razorpay saw a 54% growth in scale to Rs 2,279 crore in FY23 along with Rs 7.2 crore profit whereas Infibeam Avenues posted Rs 1,962 crore revenue and Rs 136 crore profit during FY23. In October 2022, PayU called off BillDesk’s acquisition after 14 months of signing the agreement due to the non-fulfillment of certain conditions. It would have been one of the biggest deals in India’s fintech space.

BillDesk records Rs 2,678 Cr revenue in FY23; profits fall 5%

EntrackrEntrackr · 1y ago
BillDesk records Rs 2,678 Cr revenue in FY23; profits fall 5%
Medial

B2B fintech company BillDesk seems to have lost its momentum in the past couple of years as it fell short of securing a double-digit growth in FY23. Moreover, profits also reduced 5.1% in the fiscal year ending March 2023. BillDesk’s revenue from operations grew 9.6% to Rs 2,678 crore during FY23, as per the company’s consolidated financial statements with the Registrar of Companies. BillDesk charges fees for the processing and settlement services of electronic transactions — and collections from these services accounted for more than 70% of the total operating revenue in FY23. It also generated a significant part ~10% of its revenue from loyalty programs for its clients while the remaining part came from the sale of products (PINS and e-top-up subscriptions) and other operating activities during the last fiscal year. Furthermore, it also earned Rs 87.15 crore via interest and gain on financial assets (non-operating income), taking the overall revenue to Rs 2,765 crore in FY23. As per the startup intelligence platform TheKredible, BillDesk spent the most on technical services (bank fees and service charges) which formed 83.8% of the total expenditure. This cost went up 9.3% to Rs 2,146 crore during FY23 from Rs 1,963.6 crore in FY22. Employee benefits expenses increased 35.4% to Rs 245 crore during the last fiscal year from Rs 181 crore in FY22. The company’s burn on data, communication, legal, and information technology catalyzed its total expenses by 11.6% to Rs 2,561 crore in FY23. Head to TheKredible for the complete expense breakdown. Coming to the bottom line of the company, its profits shrank marginally (5.1%) to Rs 141.91 crore in FY23 against Rs 149.6 crore in FY22. Followed by the rising expenses and reconciliation in profits, BillDesk’s operating cash flows turned negative to Rs -121.63 crore in FY23. In FY22, it recorded a positive cash flow of Rs 39.83 crore. On a unit level, BillDesk spent Re 0.96 to earn a rupee of operating revenue during FY23. The company’s EBITDA margin and ROCE also worsened to 9.23% and 7.75% during the same period. FY22-FY23 FY22 FY23 EBITDA Margin 10.21% 9.23% Expense/₹ of Op Revenue ₹0.94 ₹0.96 ROCE 8.81% 7.75% BillDesk competes with Razorpay, Infibeam Avenues, and PayU among other payment gateways. Razorpay saw a 54% growth in scale to Rs 2,279 crore in FY23 along with Rs 7.2 crore profit whereas Infibeam Avenues posted Rs 1,962 crore revenue and Rs 136 crore profit during FY23. In October 2022, PayU called off BillDesk’s acquisition after 14 months of signing the agreement due to the non-fulfillment of certain conditions. It would have been one of the biggest deals in India’s fintech space.

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