🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Magicpin scales up over 83% in FY23; controls losses

EntrackrEntrackr · 1y ago
Magicpin scales up over 83% in FY23; controls losses
Medial

Offline discovery and rewards platform Magicpin grew at a rapid clip with over 83% year-on-year growth during the fiscal year ending March 2023. Reduced spendings on advertising further helped the Gurugram-based company to keep losses in check during the same period. Magicpin’s revenue from operations grew by 83.3% to Rs 297 crore in FY23 from Rs 162 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. The sale of vouchers was the primary source of revenue for the Lightspeed-backed firm. While the collection from commission and marketing were other revenue drivers for Magicpin. It also made Rs 18 crore from interest on fixed deposits and the sale of current investments, tallying the overall income to Rs 315 crore in FY23. ALSO READ: MagicPin holds the fort for hyperlocal space; ONDC next frontier For the rewards platform, the sale of procurement vouchers was the largest cost center for the company while its employee benefits increased by 26.7% to Rs 76 crore in FY23. Its advertising and promotions, legal/professional, finance, traveling, and other overheads catalyzed the overall expenditure up by 34.5% to Rs 429 crore in FY23 from Rs 319 crore in FY22. Check TheKredible for the detailed expense breakup. A 40% cut in advertising helped Magicpin reduce its losses by 23.5% to Rs 114 crore in FY23 from Rs 149 crore in FY22. Its ROCE and EBITDA margins stood at -48% and -35.2% respectively. On a unit level, it spent Rs 1.44 to earn a rupee in FY23. The sharp cut in advertising signals the efforts at Magicpin to turn the corner on losses that still have a long way to go. The dependence of the business on constant advertising support will become starker in the FY24 numbers, but we believe growth will be impacted if the firm does that — which would indicate costs will need to be cut in many more areas to drive in revenues at a lower cost. While the firm does not share category wise breakups, we believe the dine-out category, and possibly electronics are key, but those are also where Magicpin bears the highest costs. It’s a business where assumptions have to be challenged constantly, and Magicpin, with all its experience in the business now, needs to figure out newer categories where it can cut better deals faster and take them to market more smartly as well. It could be something as extreme as lab diamonds, gardening equipment, or whatever research turns up, but a rethink is a must. Meanwhile, the company says they have witnessed stupendous growth in the fiscal year ended 2024. “In FY24, we have more than doubled our scale and revenue. This growth is primarily driven by better penetration in our core localities, leadership in offline retail segments of fashion & mom-&-pop QSR and higher user engagement,” said Chunky Shah, head of finance, Magicpin. “Our cash-burn reduced more than 50% in the same period, and we remain committed to achieve EBITDA break-even in the next fiscal year.” FY22-FY23 FY22 FY23 EBITDA Margin -86% -35.2% Expense/₹ of Op Revenue ₹1.97 ₹1.44 ROCE -44% -48% Over the past 12 months, the firm claims to have added more than 150 fashion brands, and 10,000 fashion stores. It also saw significant progress with the Open Network for Digital Commerce (ONDC) network where it claims to have witnessed two-fold growth in the food delivery orders and orders peaked at 50k in a single day. Note: Magicpin had previously recorded its revenue for FY22 as Rs 233 crore, but have now changed their methods to IndAS accounting standard, which brought down their FY22 revenue to Rs 162 crore.

2

Related News

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.

Magicpin triples revenue to Rs 870 Cr in FY24, cuts losses

EntrackrEntrackr · 5m ago
Magicpin triples revenue to Rs 870 Cr in FY24, cuts losses
Medial

Magicpin triples revenue to Rs 870 Cr in FY24, cuts losses Hyperlocal retail platform Magicpin demonstrated notable financial results, scaling nearly three-fold during the last fiscal year, which ended in March 2024. Moreover, the Gurugram-based firm managed to control its losses by 25% in the same period. Magicpin’s revenue from operations surged 2.92X year-on-year to Rs 870 crore in FY24 from Rs 297 crore in FY23, its annual financial statements sourced from the Registrar of Companies show. Magicpin, a hyperlocal retail platform, has partnered with over 500 brands and 20,000 fashion stores across India. The sale of vouchers contributed 92% of its total operating revenue, making it the primary revenue source for the Lightspeed-backed firm. Additional revenue came from commissions and ONDC subsidies. The company earned an additional Rs 9.6 crore from interest on deposits and investment gains, bringing its total income to Rs 880 crore in the last fiscal year from Rs 315 crore in FY23. Magicpin has launched MagicFleet, an AI-powered SaaS platform that onboarded over 40,000 riders in its first four months and now processes more than 3,00,000 orders per month. The company plans to expand this to 1,00,000 riders and 1 million deliveries. It introduced magicNow, a feature designed to meet the increasing demand for fast deliveries. For the reward platform firm, the procurement of vouchers was the largest cost center, forming 80.7% of the overall expenditure. To the tune of scale, this cost grew 3X to Rs 776 crore in FY24 from Rs 253 crore in FY23. The firm managed to keep its employee benefits flat and its advertising cost was reduced by 15% in the previous fiscal. Its delivery charges, technology, server, payment gateway, legal, and other overheads pushed the total expenditure to Rs 961 crore in FY24. The three-fold surge in scale coupled with controlled expenditure helped Magicpin to reduce its losses by 25% to Rs 78 crore in FY24. Its ROCE and EBITDA margins stood at -49.7% and -8.67%, respectively. Magicpin’s cost efficiency improved, with Rs 1.10 spent to earn a rupee in FY24. At the end of the last fiscal year, its total current assets stood at 196 crore with the cash and bank balance of Rs 50 crore. We excluded ESOP costs from the loss calculation as they are non-cash expenses. Magicpin reported that FY 2024 was a transformative year, establishing itself as India’s largest hyperlocal startup, the third-largest food delivery app, and the largest seller app on ONDC for delivery, according to CFO Chunky Shah. Magicpin has grown without raising external funds in the past two fiscal years. In November 2021, it secured $60 million in a Series D round, with Zomato investing $50 million for a 16% stake. According to TheKredible, Lightspeed is the largest stakeholder, holding a 34% stake in the firm. Launched well after the first startup rush into ecomm but early enough to avoid some of the worst excesses, Magicpin has done well to outlast many of its peers since it started in 2015. Leaving it well placed to take advantage in a market that has evolved considerably, and no longer demands the kind of burn rates we saw till about 2020. As a leader in the ONDC space, Magicpin has gained a strategic advantage and appears well-positioned to leverage new opportunities. The company, often seen as a quiet performer, may still have more surprises in store.

Magicpin records 15x order growth on ONDC network in 15 months, crosses 1.5 lakh daily orders

Economic TimesEconomic Times · 9m ago
Magicpin records 15x order growth on ONDC network in 15 months, crosses 1.5 lakh daily orders
Medial

- magicpin has achieved a 15 times growth in daily orders for food and logistics services on the government-backed ONDC platform. - They started with 22,000 restaurant partners and scaled it up to 70,000 partners on ONDC. - magicpin witnessed a rapid increase in daily orders, from 100 to 10,000 in just four weeks. - The company has achieved double-digit market share in major cities, with over 10% market share in cities like Delhi and Bengaluru. - 90% of food orders from prominent buyer apps like Paytm, Tata Neu, and Ola are now fulfilled by magicpin. - magicpin has invested Rs 100 crore to onboard 1 lakh new restaurants and cloud kitchens on ONDC, providing incentives such as zero commission, zero fees, discounts, and free home delivery for customers.

Qure.ai revenue soars 83% to Rs 141 Cr in FY24, slashes losses

EntrackrEntrackr · 9m ago
Qure.ai revenue soars 83% to Rs 141 Cr in FY24, slashes losses
Medial

Healthcare firm Qure.ai recently raised $65 million in a funding round led by Lightspeed Ventures and 360 One Asset Management. This investment follows an impressive 83% growth in Qure.ai’s revenue, which surpassed Rs 140 crore in FY24. The Lightspeed-backed firm also reduced its losses by 38.5% in this period. Qure.ai’s revenue from operations grew to Rs 141 crore in the fiscal year ending March 2024 from Rs 77 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies show. Qure.ai offers AI-driven solutions designed to assist radiologists and physicians in diagnosing critical conditions such as tuberculosis, lung cancer, and stroke. In the last fiscal year, sales of these tools and software contributed 87.23% of the company’s operating revenue, doubling to Rs 123 crore. The remaining revenue was generated from the sale of healthcare products. In line with many tech and AI-driven companies, employee benefits made up more than half of Qure.ai’s total expenses. These costs surged by 66.2%, rising to Rs 108 crore in FY24 from Rs 65 crore in FY23, with Rs 12 crore allocated to ESOP expenses, a non-cash component. Additional expenses, including costs for materials, communication, travel, advertising, legal, and other overheads, contributed to an 18.2% overall increase in expenses, pushing total costs to Rs 201 crore in FY24 from Rs 170 crore in FY23. See TheKredible for the detailed expense breakup. An over 80% surge in scale, combined with effective cost controls, enabled Qure.ai to cut losses by 38.5%, reducing them to Rs 48 crore in FY24 from Rs 78 crore in FY23. While its EBITDA margin improved, it remained negative at -22.73% in FY24. On a unit basis, the company spent Rs 1.43 to earn a rupee in FY24. FY23-FY24 FY23 FY24 EBITDA Margin -78.02% -22.73% Expense/₹ of Op Revenue ₹2.21 ₹1.43 ROCE NA NA The Mumbai-based firm has raised over $120 million to date, including a recent $65 million round. According to startup data platform TheKredible, notable investors in Qure.ai include Peak XV, Lightspeed, Fractal, and Novo Holdings. Large funding rounds of the type Qure.ai has attracted are increasingly available only for firms that have traveled some distance in demonstrating market acceptance. For Qure.ai, that is evident in the topline as well as the spread of more sophisticated diagnostic tools that are available more widely in India today, promising a heady period of strong growth for the foreseeable future.

Zolostays hits Rs 200 Cr revenue in FY24, trims losses

EntrackrEntrackr · 5m ago
Zolostays hits Rs 200 Cr revenue in FY24, trims losses
Medial

Zolostays hits Rs 200 Cr revenue in FY24, trims losses Co-living company Zolostays has achieved a fivefold increase in growth over the last two fiscal years, expanding its revenue from Rs 43 crore in FY22 to more than Rs 200 crore in FY24. Despite this growth, the Nexus Ventures-backed firm maintained control over its losses during this period. Zolostays’ revenue from operations doubled to Rs 204.4 crore in FY24 from Rs 95.5 crore in FY23, as per its consolidated financial statement sourced from the Registrar of Companies (RoC). Zolostays provides co-living spaces to students, professionals, and organizations. Income from residential accommodations and facilities, including service fees and accommodation charges, accounted for 93% of the total operating revenue. This income grew 3.4x to Rs 191 crore in FY24 from Rs 55 crore in FY23. Zolostays also offers services to colleges and universities for managing residential facilities, along with food subscriptions and other amenities. Revenue from this segment dropped 72% to Rs 10.4 crore in FY24. The firm earned Rs 4.6 crore in interest income, bringing its total income to Rs 209 crore in FY24. On the cost front, property management and operational expenses were the largest component, accounting for 52% of total costs. These expenses, which include food, rent, electricity, housekeeping, and consumables, increased 2.3X to Rs 139 crore in FY24 from Rs 60.5 crore in FY23. Its employee benefit expenses increased by 16% to Rs 83 crore in FY24. Legal, advertising, communication, commission, and other overheads took the total cost up by 58% to Rs 266 crore in FY24 from Rs 168 crore in FY23. Zolostays' two-fold growth and controlled expenses led to a 17.4% reduction in losses, down to Rs 57 crore in FY24 from Rs 69 crore in FY23. Its ROCE and EBITDA margin stood at -89.96% and -16.75%, respectively, with an expense-to-revenue ratio of Rs 1.30. In FY24, the Bengaluru-based firm reported current assets of Rs 76 crore, including Rs 34 crore in cash and bank balances. Zolo has raised a total of $118 million of funding to date. According to the startup data intelligence platform TheKredible, Nexus Ventures is the largest external stakeholder with 34% followed by Investcrop and Mirae Asset.

Download the medial app to read full posts, comements and news.