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Navi's FY24 operating profit falls 50% as loan write-offs surpass Rs 400 Cr

EntrackrEntrackr · 1y ago
Navi's FY24 operating profit falls 50% as loan write-offs surpass Rs 400 Cr
Medial

Navi Finserv, led by Flipkart co-founder Sachin Bansal, faced challenges scaling its revenue and profitability in the fiscal year ending March 2024. Despite a 6.6% decrease in scale, Navi’s operating profit declined by more than 50%, driven by a fall in collections and an increase in loan write-offs (bad debt). Navi’s revenue from operations decreased to Rs 1,906 crore in FY24 from Rs 2,041 crore in FY23, according to its consolidated annual report. It offers services such as personal and home loans, bill payments, insurance, digital gold, and mutual funds. Interest income made up 84.5% of the total revenue but saw a decline of 12.3%, reaching Rs 1,611 crore in the last fiscal year (FY24). Fees, commissions, gains on fair value, and other financial instruments brought Navi’s total income to Rs 1,909 crore in FY24, down from Rs 2,078 crore in FY23, reflecting an 8.1% year-on-year decrease. As with other lending companies, finance costs were the largest expenditure for Navi, accounting for 37.6% of total expenses. These costs also decreased by 4.8%, reaching Rs 658 crore in FY24. Additionally, Navi reduced employee benefits by 41.9%in FY24. Notably, the firm’s loan write-offs surged 3.2X to Rs 406 crore in FY24, up from Rs 125 crore in FY23. Fees, commissions, software, legal expenses, customer onboarding, and other costs pushed total expenditure to Rs 1,750 crore in FY24. Navi’s shrinking scale and major write-offs led to a 56% decline in operating profits, dropping to Rs 159 crore from Rs 335 crore in FY23. Despite this, the company posted a net profit of Rs 545 crore in FY24, largely due to Rs 429 crore gained from the sale of Svatantra Microfin, a former subsidiary. Svatantra Microfin was sold to Chaitanya India Fin Credit for a total consideration of Rs 1,166 crore in November 2023. FY23-FY24 FY23 FY24 EBITDA Margin 16.89% 9.80% Expense/₹ of Op Revenue ₹0.85 ₹0.92 ROCE 12.80% 5.39% According to Entrackr, Navi’s ROCE and EBITDA margins worsened to 5.39% and 12.80%, respectively. On a unit level, it spent Re 0.92 to earn a rupee in the fiscal year ending March 2024.

Three-year-old Zype’s revenue jumps 5X to Rs 101 Cr in FY25

EntrackrEntrackr · 4d ago
Three-year-old Zype’s revenue jumps 5X to Rs 101 Cr in FY25
Medial

Three-year-old Zype’s revenue jumps 5X to Rs 101 Cr in FY25 Digital lending startup Zype’s operating revenue surged nearly fivefold to cross Rs 100 crore in FY25, while expenses tripled due to bad debt write-offs and higher NPA provisions. Digital lending startup Zype saw its operating revenue surge nearly fivefold, crossing the Rs 100 crore threshold in the fiscal year ending March 2025. At the same time, its expenses tripled, due to bad debt write-offs (likely NPAs) and increased provisioning for non-performing assets. Zype’s revenue from operations ballooned nearly 5X to Rs 101.3 crore in FY25 from Rs 20.3 crore in FY24, its financial statements sourced from the Registrar of Companies (RoC) show. Zype, which has been operating as a NBFC, provides unsecured personal loans to young salaried professionals for purposes such as weddings, home repairs, and medical expenses. In FY25, interest income from its loan portfolio surged nearly sixfold to Rs 62 crore from Rs 10.58 crore in FY24, contributing 61% of its revenue. Processing fees also expanded 5X to Rs 34.39 crore, accounting for 34% of its topline. Zype also generated Rs 4.8 crore from other operating services, including penal charges, and an additional Rs 4.7 crore from non-operating sources such as interest on fixed deposits, income tax refunds, and gains on mutual funds. This took its total income to Rs 106 crore in FY25. Employee benefit expenses made up 20% of total costs, rising 89% to Rs 24 crore in FY25. Finance costs on borrowings contributed 19%, jumping to Rs 22.6 crore from just Rs 1.6 crore in FY24, while marketing expenses also doubled during the year to Rs 10 crore. The company wrote off bad debts worth Rs 19 crore and made provisioning of Rs 7.95 crore for non-performing assets (NPAs), together accounting for 22.67% of total expenses. Other overheads, including lease rentals for office and equipment, legal and professional fees, IT expenses, verification costs and others added another Rs 35.4 crore. Overall total expenditure for the firm rose over 3.3X to Rs 118.9 crore in FY25, compared to Rs 35.8 crore in FY24. Despite the revenue growth, write-offs of bad debts and provisions for NPAs pushed its losses up 76% to Rs 12.85 crore in FY25 from Rs 7.3 crore in FY24. At a unit level, Zype spent Rs 1.17 to earn one rupee of operating revenue in FY25. As of March 2025, the company’s current assets stood at Rs 368.7 crore, including cash and bank balances of Rs 33.65 crore. According to startup data intelligence platform TheKredible, the Mumbai-based firm raised over $30 million, including its Rs 90 crore ($10.2 million) round led by Japanese venture capital firm Unleash Capital Partners, with participation from existing investor Xponentia Capital.

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