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True Balance’s profit zooms over 2X to Rs 138 Cr in FY24

EntrackrEntrackr · 1y ago
True Balance’s profit zooms over 2X to Rs 138 Cr in FY24
Medial

True Balance, founded by South Korean entrepreneur Cheolwon Lee, started with a mobile and DTH recharge platform. However, the company’s business dynamics changed drastically after FY21 when it started lending (personal or short-term loans). This shift enabled the company to register over 74X growth in its scale in the past five fiscals as its revenue ballooned to Rs 667 crore in FY24 from Rs 8.95 crore in FY19. For context, the SoftBank-backed firm started lending in FY20 through third parties, and a year later it also got its own NBFC —True Balance. On a fiscal to fiscal basis, True Balance’s operating revenue grew 54.8% to Rs 667 crore in FY24 from Rs 431 crore in FY23, its consolidated financial statements sourced from Registrar of Companies show. True Balance’s personal loan platform usually targets borrowers who are neglected by banks and have no credit scores. The service and processing charges on the loans offered contributed 56% of the firm’s total operating revenue. This income spiked 63.2% to Rs 377 crore in FY24 from Rs 231 crore in FY23. Meanwhile, the income from interest stood at Rs 280 crore in FY24. The penalties on dues and non-operating incomes (interest from fixed and current investments) took True Balance’s overall revenue to Rs 673 crore in the fiscal year ending March 2024 from Rs 433 crore in FY23. See TheKredible for the detailed revenue breakup. For the cash loan firm, the bad debts (NPAs) and their provisions formed 36.2% of its overall cost which increased by 26.3% to Rs 202 crore in FY24 from Rs 160 crore in FY23. The fintech firm had written off the bad debts worth over Rs 114 crore while the rest were the provisions related to the bad debts in FY24. The firm’s spending on employee benefits, finance, advertising, information technology, technical, legal, and other overheads took its overall cost up by 51.4% to Rs 557 crore in FY24. Head to TheKredible for the detailed expense breakdown. Over 50% YoY growth helped True Balance to post a 2.3X jump in its net profits to Rs 138 crore in FY24 from Rs 59 crore in FY23. Its ROCE and EBITDA margins improved to 42.24% and 27.64%, respectively. On a unit level, the ten year-old firm spent Rs 0.84 to earn a rupee in FY24. FY23-FY24 FY23 FY24 EBITDA Margin 22.40% 27.64% Expense/₹ of Op Revenue ₹0.85 ₹0.84 ROCE 32.11% 42.24% According to TheKredible, True Balance has raised $140 million across equity and debt rounds including its $28 million led by SoftBank and Daesung Private Equity. The company raised its last round almost three years back. Looking at the numbers, one can’t help but wonder at not just the numbers, but the impressive balancing act True Balance must manage to stay below the radar of regulators and watchdogs including the RBI. With its short tenure, high interest and high processing charges True Balance tries to balance out its high margins with the promise of 24×7 service and higher risk appetite. But as the delinquency numbers indicate, it must be a high intensity gig, balancing out risks versus margins. Even as margins are winning for now, we still believe the risk of sudden regulatory heavy handedness is intrinsic to its otherwise impressive business. It is also at a stage where the other next stage of growth will be fueled by more debt than equity. Considering the large appetite it can be expected to have to maintain its growth momentum, it will be fascinating to see if it has a trick or two for that too up its sleeve.

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ProcMart GMV zooms 3X to Rs 621 Cr in FY24; profit slips 56%

EntrackrEntrackr · 11m ago
ProcMart GMV zooms 3X to Rs 621 Cr in FY24; profit slips 56%
Medial

B2B procurement marketplace ProcMart has been growing at a scorching pace over the past two fiscal years, with its gross merchandise value (GMV) spiking 5X in FY23 and FY24 compared to FY22. In FY24, the company achieved 3X GMV growth, but its profit nosedived by 56.5% ProcMart’s gross revenue shot up over 200% to Rs 621.5 crore during the fiscal year ending March 2024 in comparison to Rs 206.07 crore in FY23, the company’s consolidated financial statements sourced from the Registrar of Companies (RoC) show. ProcMart is engaged in the trading business of industrial automation, electrical, mechanical, electronics, IT items, abrasive, fasteners, safety & security items, various tools & consumables. The sale of these products accounted for 98% of the total gross revenue in the last fiscal year. The company also provides business procurement assistance services which formed the remaining part of the GMV during the last fiscal year. Overall, the company generated Rs 624.3 crore in gross revenue including Rs 2.79 crore from interest and gains on financial assets. Moving forward, the cost of materials was found to be the largest burn and formed 93.4% of the total expenses. This cost ballooned 216.3% to Rs 582 crore in FY24. The company spent 3% of its total expenses on employee benefits which stood at Rs 19 crore during the same period. Further, expenses such as transportation, legal & professional, rent et al took over the company’s total cost by 205.6% to Rs 623.4 crore during FY24 from Rs 204 crore in FY23 For the complete expense breakdown, head to TheKredible. Despite accelerating scale, ProcMart barely finished staying in the green. The company’s profits slipped 56.5% to Rs 73 lakh in FY24 against Rs 1.68 crore in FY23. Its operating cash flows however turned positive at Rs 15.81 crore crore during the last fiscal year. FY23-FY24 FY23 FY24 EBITDA Margin 2.28% 1.33% Expense/₹ of Op Revenue ₹0.99 ₹1.00 ROCE 7.33% 5.45% As per TheKredible, the firm’s EBITDA margin and ROCE registered at 1.33% and 5.45%, respectively. On a unit level, ProcMart spent Re 1 to earn a rupee of operating revenue during the previous fiscal year. ProcMar has raised over $40 million in funding to date across three rounds. Its last funding round came in April this year where it raised $30 million funding co-led by Fundamentum and Edelweiss Discovery Fund. As per TheKredible, the company was valued at around Rs 724 crore or $88 million (post-money). The B2B procurement space has been a surprise winner with the storied success of multiple firms. There is however little doubt that margins are thin, prompting changes in the model to contract manufacturing, financing and more by players. ProcMart for now seems to be sticking to the plain vanilla procurement based model. As it scales up, it will be interesting to see if it sticks to the model, or finds its own way into a higher margin revenue stream. Until then, it will know that maintaining a strong growth rate will be the least expected of it.

Three year old luggage brand uppercase’s revenue zooms 6X to Rs 62 Cr

EntrackrEntrackr · 11m ago
Three year old luggage brand uppercase’s revenue zooms 6X to Rs 62 Cr
Medial

Direct-to-consumer luggage brand uppercase has recently secured $9 million in a Series A funding round led by Accel Partners. The investment appears to be driven by the company’s rapid growth and strong unit economics. In FY24, uppercase reported a 5.8X surge in revenue while successfully reducing its losses by over 19%. Owned and operated by Acefour Accessories, it saw its revenue from operations soar to Rs 62.2 crore in FY24, up from Rs 10.7 crore in FY23, according to financial statements filed with the RoC. The sale of products—primarily eco-friendly trolleys, backpacks, and duffel bags—was the main driver of this growth, contributing 98% of the operating revenue. Additionally, the company earned Rs 1.78 crore through gains from the sale of other investments and interest on bank deposits, bringing uppercase’s total income to Rs 64 crore in FY24. When examining expenses, the cost of materials was the largest contributor, accounting for 40% of the total expenses. This cost surged 5.8X, reaching Rs 32.6 crore in FY24, up from Rs 6 crore in FY23. Advertising expenses made up 19% of total costs, increasing by 62% to Rs 15.8 crore. Employee benefit expenses grew 31% to Rs 13.6 crore in the last fiscal, with Rs 12 crore allocated to employee salaries. Selling and distribution expenses, along with legal and professional fees, were other significant costs that contributed to a 2.5X spike in total expenses, rising to Rs 83.2 crore in FY24 from Rs 32.8 crore in FY23. Due to the substantial revenue growth, uppercase was able to reduce its losses by 19.2%, bringing them down to Rs 17.55 crore in the fiscal year ending March 2024 from Rs 21.71 crore in FY23. FY23-FY24 FY23 FY24 EBITDA Margin -195.14% -29.78% Expense/₹ of Op Revenue ₹2.12 ₹1.34 ROCE -79.91% -67.45% The company’s return on Capital employed (ROCE) and EBITDA margin stood at -67.45% and -29.78%, respectively. On a per-unit basis, uppercase spent Rs 1.34 to generate Re 1 of operating income in FY24, a significant improvement from Rs 2.12 per rupee of income in FY23. uppercase sells travel gear both online and through 1,800 multi-brand stores across India. The Mumbai-based company is aiming to more than double its revenue to Rs 150 crore by FY25, with a longer-term goal of reaching Rs 500 crore by opening 250 exclusive retail stores over the next three years. uppercase faces competition from several direct-to-consumer (D2C) luggage brands, many of which have also raised significant capital over the past year. In February, Mokobara raised $12 million in a Series B funding round led by Peak XV. Assembly secured $2 million in funding, led by Prath Capital, while Nasher Miles raised $4 million in a bridge round. EUME also managed to secure funds in a seed round. It has been interesting to see a relatively low profile category like luggage draw so much attention in recent years. Ironically, a lot of it is thanks to ex-VIP hands who are helming uppercase or even leader Samsonite, for that matter. Continuing weakness at VIP seems to have opened up opportunities for other players to step in, besides innovation in terms of market segmentation. A market that is dominated by the top 3 players at over 85% share even today (VIP, Samsonite and Safari) could be wearing a very different look if the well made plans of many of these new entrants play out. Even otherwise, the market remains semi-commoditised, thanks to cheap imports, and the relative ease of picking up luggage from other markets for international travelers from India, for instance. Brand loyalty remains low in the mass segment, and it will take a significant breakthrough in terms of manufacturing, funding or branding to shift the market trajectory from a discounts and distribution based model.

Unicommerce IPO sees 5.6X oversubscription from retail buyers

EntrackrEntrackr · 1y ago
Unicommerce IPO sees 5.6X oversubscription from retail buyers
Medial

The initial public offering of e-commerce SaaS platform Unicommerce was fully subscribed by retail investors within the first three hours of its opening. The Unicommerce IPO is scheduled from August 6 to 8, with a price band set at Rs 102-108 per share and a minimum lot size of 138 shares. To participate, investors must make a minimum investment of Rs 14,076. As of 3:11 PM (August 6), the retail portion in the Gurugram-based firm’s IPO has been oversubscribed by 5.58 times, while non-institutional investors have filled 82% of their allotted portion. The SoftBank-backed company also allocated Rs 124 crore or $15 million to its anchor investors yesterday. SBI, ICICI, Morgan Stanley, Nippon, Kotak, Aditya Birla, HDFC, and Franklin India are some key anchor investors for Unicommerce. The company demonstrated strong financial growth in the past two years as its revenue surged from Rs 59 crore in FY22 to Rs 104 crore in FY24. Significantly, the firm’s profit spiked over 2X in the same period.

Zomato posts Rs 175 Cr PAT in Q4 FY24, revenue grows 8.3%

EntrackrEntrackr · 1y ago
Zomato posts Rs 175 Cr PAT in Q4 FY24, revenue grows 8.3%
Medial

Foodtech and quick commerce platform Zomato on Monday released its financial results for the fourth quarter of the ongoing fiscal year (Q4 FY24). With the steady expansion, the company has witnessed around 27% increase in its profit along with marginal growth in revenue. Zomato’s revenue from operations grew 8.3% to Rs 3,562 crore in Q4 FY24 in contrast to Rs 3,288 crore in Q3 FY24, as per the firm’s consolidated financial results sourced from the National Stock Exchange. With this, Zomato’s overall revenue for the fiscal year ending March 2024 jumped 71% to Rs 12,114 crore from Rs 7,079 in FY23. Zomato operates several business units including a food marketplace, Hyperpure and quick commerce platform BlinkIt. Income from food and delivery biz accounted for 48.8% in Q4 FY24 which grew 2.1% to Rs 1,739 in Q4 FY24 from Rs Rs 1,704 crore in Q3 FY24. The collections from Hyperpure supplies (B2B) and quick commerce vertical (Blinkit) grew 10.7% and 19.4% to Rs 951 crore and Rs 769 crore, respectively. Earning from “Going-out” and other non-operating income took Zomato Group’s overall revenue to Rs 3,797 crore in Q4 FY24. The cost for delivery and related charges formed 30.7% of the overall expenditure which increased 4.7% to Rs 1,118 crore in Q4 FY24. Its cost of procurement, employee benefits, advertising, and marketing pushed its overall expenditure to Rs 3,636 in Q4FY24 from Rs 3,382 in Q3FY24. The optimum cost mechanism and increased scale helped Zomato to record a 26.8% hike in its profits to Rs 175 in Q4 FY24 from Rs 138 crore in Q3 FY24. On a unit level, the Gurugram-based company spent Rs 1.02 to earn a rupee in Q4 FY24.

A23 reports Rs 841 Cr revenue and Rs 72 Cr profit in FY24

EntrackrEntrackr · 7m ago
A23 reports Rs 841 Cr revenue and Rs 72 Cr profit in FY24
Medial

Online rummy platform A23 reported flat revenue growth for the fiscal year ending March 2024. However, the company achieved a 24% increase in profits, driven by controlled expenses and an increase in non-operating income during the same period. A23’s net revenue was recorded at Rs 841 crore in FY24 from Rs 839 crore in FY23, its consolidated annual financial statements sourced from the Registrar of Companies (RoC) show. Notably, the firm's gross revenue grew by 31% to Rs 1,378 crore in FY24, up from Rs 1,051 crore in FY23. Of this, Rs 537 crore was paid out to players, resulting in a net revenue of Rs 841 crore for FY24. The platform fee, or commission, charged as a percentage of the buy-in fees from users, remained the sole revenue source for A23 during FY24. Additionally, the platform earned Rs 37 crore, primarily from interest on deposits and current investments, bringing its total revenue to Rs 878 crore in FY24. The company claims to have over 5 crore players on its platform and operates five games - rummy, fantasy, poker, carrom, and pool. A23 has not disclosed its overheads much and booked Rs 515 crore, which is 68% of the overall cost under the miscellaneous head. This might include all the major costs including advertising, servers, and hosting. A23’s employee benefits grew 41% to Rs 138 crore in FY24 from Rs 98 crore in FY23. Its legal, safety and security, printing, traveling, and other overheads pushed the total expenditure to Rs 761 crore in FY24. Despite the flat scale, the controlled expenditure and increase in other income helped A23 to post a 24% increase in its net profits to Rs 72 crore in FY24, compared to Rs 58 crore in FY23. Its ROCE and EBITDA margin improved to 11.5% and 15.26%, respectively while the expense-per-revenue ratio stood at Rs 0.90. At the end of FY24, A23’s total current assets were recorded at Rs 613 crore with cash and bank balances of Rs 534 crore.

Exclusive: OfBusiness revenue nears Rs 20,000 Cr in FY24; profits crosses Rs 600 Cr

EntrackrEntrackr · 1y ago
Exclusive: OfBusiness revenue nears Rs 20,000 Cr in FY24; profits crosses Rs 600 Cr
Medial

Following a 2X jump in scale during FY23, industrial goods and services procurement platform OfBusiness continued its growth run as its revenue grew by 25.8% in the fiscal year ending March 2024. At the same time, the firm’s profit spiked by 30% and crossed the Rs 600 crore mark. OfBusiness’ revenue grew to Rs 19,296 crore in FY24 from 15,343 crore in FY23, according to the company’s consolidated financial documents reviewed by Entrackr. The sale of industrial goods (raw materials) and revenue from financial services offered to the buyers on their platforms were the primary sources of operating revenue for OfBusiness in FY24. The company also made Rs 232 crore from interest and other financial activities, tallying the overall revenue to Rs 19,529 crore in FY24. Being a goods and service procurement platform, the purchase of industrial goods and raw materials including construction materials, chemicals, and produce emerged as the largest cost centers, forming 88.5% of OfBusiness’ total expenses during FY24. In the line of scale, this cost increased by 21% to Rs 16,543 crore in FY24. The firm’s burn on employee benefits, finance, legal, conveyance, advertising, and other overheads took its overall cost up by 24.3% to Rs 18,696 crore in FY24 from Rs 15,037 crore in FY23. Note: OfBusiness’ ESOP-related expenses for this year stood at Rs 32 Cr in FY24 which is similar to last year. The decent growth in scale and controlled expenditure helped OfBusiness to post a 30.2% increase in its profits to Rs 603 crore in FY24. Its ROCE and EBITDA margin improved to 12.33% and 7.44% respectively. On a unit level, OfBusiness spent Rs 0.97 to earn a rupee in FY24. FY23-FY24 FY23 FY24 EBITDA Margin 6.30% 7.44% Expense/₹ of Op Revenue ₹0.98 ₹0.97 ROCE 9.28 12.23 OfBusiness has raised around $800 million including its $325 million Series G round in December 2021 where it was valued at $5 billion. According to the startup data intelligence platform TheKredible, Alpha Wave is the largest external stakeholder with 19.16% followed by Creation Investment and Matrix Partners. OfBusiness competes with Zetwerk, Infra.market, and Moglix. Zetwerk recorded Rs 11,449 crore GMV in FY23 while Infra. Market and Moglix’s gross revenue stood at 11,846 crore and Rs 4,500 crore respectively in the same period (FY23).

Zomato posts Rs 3,288 Cr revenue and Rs 138 Cr profit in Q3 FY24

EntrackrEntrackr · 1y ago
Zomato posts Rs 3,288 Cr revenue and Rs 138 Cr profit in Q3 FY24
Medial

Foodtech and quick commerce platform Zomato on Thursday released its financial results for the third quarter of the ongoing fiscal year (Q3 FY24). The results showcase a decent growth in scale along with a 3.8X jump in profits. Zomato’s revenue from operations grew 15.4% to Rs 3,288 crore in Q3 FY24 in contrast to Rs 2,848 crore Q2 FY24, as per the firm’s consolidated financial results sourced from National Stock Exchange. Compared to the third quarter of the previous fiscal (Q3 FY23) year, its operating revenue went up by 68.8% from Rs 1,948 crore. Zomato operates several units including a food marketplace platform connecting end users, restaurants, and delivery personnel. Hyperpure provides farm-to-fork supplies to restaurants and businesses while Blinkit offers kirana, FMCG and other essentials within 10 minutes. Meanwhile, dining.out and Zomato Live let users discover restaurants, reserve tables, and book tickets for entertainment events. The firm made 51.8% of its total operating revenue via food ordering and delivery business, which grew 10.2% to Rs 1,704 crore in Q3 FY24 from Rs 1,546 crore in Q2 of the same financial year. Collections from its Hyperpure supplies (B2B business) increased 15.3% to Rs 859 crore during the same period while quick commerce vertical (Blinkit) contributed Rs 644 crore to the group’s coffers. The remaining income came from the ‘Going-out’ segment and other operating activities during the quarter ending December 2023. Additionally, Zomato also earned Rs 219 crore as non-operating income (mainly from interest and gains on financial assets) in Q3 FY24. As a result, its overall revenue crossed Rs 3,500 crore during the period. Coming to expenses, delivery and related charges accounted for 31.6% in Q3 which surged 16.2% to Rs 1,068 crore. Purchase of stock (after adjustment of changes in inventories) inclined 16% to Rs 782 crore while employee benefits cost remained flat at Rs 423 crore during the quarter. Zomato also spent Rs 374 crore on advertisement and promotions, akin to which its total expenditure rose 11.3% to Rs 3,383 crore in Q3 of FY24. On the lines of rising scale, Zomato’s profits also jumped 3.8X to Rs 138 crore in Q3 against Rs 36 crore in the previous quarter. Last year in the same quarter (Q3 FY23), it booked Rs 347 crore in losses. On a unit level, the company spent Rs 1.03 to earn a rupee in Q3 of FY24. For the nine months ended period (Apr-Dec 2024), Zomato recorded Rs 8,552 crore revenue from operations with a profit of Rs 176 crore. Zomato made its public market debut in July 2021 at a valuation of $12 billion and touched its peak of over Rs 150 per share in November 2021. Later, it dwindled under Rs 50 during July 2022. Zomato got its momentum back in Q1 of FY24 when it recorded profits for the first time. Since then, the company attained nearly 3X surge in its share price and its current share price stands around Rs 144 a piece.

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