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KKR-owned Leap India profit surges 4X in FY24

EntrackrEntrackr · 4m ago
KKR-owned Leap India profit surges 4X in FY24
Medial

Fintrackr All Stories KKR-owned Leap India profit surges 4X in FY24 Logistics solutions startup Leap India recorded a 44% year-on-year revenue growth for the fiscal year ending March 2024. Moreover, the Mumbai-based company's profits surged 4X during the same period. Logistics solutions startup Leap India secured $63 million in funding from KKR in December last year, driven by a 44% year-on-year revenue growth for the fiscal year ending March 2024. Moreover, the Mumbai-based company's profits surged 4X during the same period. Leap India’s revenue from operations grew to Rs 365 crore in FY24 from Rs 253 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies show. Leap India provides supply chain solutions, including equipment pooling, packaging, inventory management, transportation, and maintenance. Serving e-commerce, consumer durables, beverages, and automotive industries, it operates 25 warehouses and 22 manufacturing units. Income from services contributed 95.6% of total revenue, which grew 43.6% to Rs 349 crore in FY24. The remaining revenue came from the sale of pallets and forklifts. The company also earned Rs 7 crore, bringing total income to Rs 372 crore in FY24 from Rs 258 crore in FY23. For an end-to-end supply chain company, the depreciation and finance costs formed 50.5% of the overall expenditure which cumulatively increased to Rs 164 crore in FY24. Its employee benefits grew by 93.8% to Rs 62 crore in the last fiscal year. The legal, freight, travel, and other overheads took the total expenditure up by 31% to Rs 325 crore in FY24 from Rs 248 crore in FY23. The 44% scale and controlled expenditure led KKR-backed firm to spike its profits by 4.1X to Rs 37 crore in FY24, compared to Rs 9 crore in FY23. On a unit level, it spent Rs 0.89 to earn a rupee of opening revenue. Its ROCE and EBITDA margins stood at 8.26% and 56.72% respectively. Last year, private equity firm KKR invested in Leap India, acquiring a majority stake through a mix of primary and secondary investments. That infusion reportedly gave TVS Capital, North Heaven, Mayfield, Morgan Stanley, and other early backers a complete exit. In 2021, Morgan Stanley invested $25 million in the firm. Leap India has raised over $180 million to date and was valued at $600 million. According to the filing, KKR controls around 78.64% stake in Leap India while Sixth Sense, First Bridge, and Madhurima International command 1.38%, 1.19%, and 0.99%, respectively.

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LiquiLoans revenue surges 3.4X to Rs 696 Cr in FY24, remains profitable

EntrackrEntrackr · 5m ago
LiquiLoans revenue surges 3.4X to Rs 696 Cr in FY24, remains profitable
Medial

LiquiLoans revenue surges 3.4X to Rs 696 Cr in FY24, remains profitable While the Reserve Bank of India (RBI) tightens regulations around the peer-to-peer (P2P) lending space, with the impact expected to be seen in FY25 and FY26, the sector’s poster child, LiquiLoans, has experienced 3.4x growth in the fiscal year ending March 2024. LiquiLoans’ revenue from operations jumped to Rs 695.63 crore in the last fiscal year (FY24) from Rs 203.43 crore in FY23, its financial statements sourced from the Registrar of Companies (RoC) show. LiquiLoans operates as a peer-to-peer lending platform, providing personal loans, consumer loans, and deposit financing. The platform emphasizes high diversification, capping portfolio exposure per borrower at 0.5%. During the last fiscal year, the sale of these services was the company’s sole source of revenue. LiquiLoans made additional Rs 10 crore from interest income which pushed its total income to Rs 706 crore in FY24. On the expense front, service fee expenses accounted for the largest share, surging 4X to Rs 578.57 crore in FY24, compared to Rs 140 crore in FY23. Commission payouts increased by 88% to Rs 64.72 crore, while employee benefit expenses rose 2.5X to Rs 40.80 crore. Overall, LiquiLoans' total expenses jumped 3.3X, reaching Rs 704.59 crore in FY24, up from Rs 212.94 crore in FY23. The steep rise in expenses led to an 88% drop in profits for LiquiLoans, declining to Rs 71 lakh in FY24 from Rs 5.70 crore in FY23. The company's ROCE and EBITDA margin stood at 1.11% and 0.35%, respectively. On a unit basis, LiquiLoans spent Rs 1.01 to generate every rupee of operating revenue in the last fiscal year. The Mumbai-based company reported cash and bank balances of Rs 33 lakh and current assets worth Rs 283 crore in FY24. According to TheKredible, Liquiloans has raised $15 million to date, with Matrix Partners and CRED serving as its lead investors. LiquiLoans has built a strong reputation in the business, and market feedback indicates some of the lowest non-performing loans in its portfolio as well. As the backend for some leading players in the business, the firm has also focused on the higher credit score side of the market, further reducing risk. What that has also meant is that margins can be narrower if returns are safer. Thus, margin expansion will need to look at the cost side harder. With the regulator keen to weed out short-term players, LiquiLoans seems well placed for a strong run in the vanilla personal loans business, besides future opportunities with other products as it builds its own database of high-quality borrowers.

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