IPO-bound coworking space provider DevX (Dev Accelerator Ltd) turned profitable in the financial year 2023-24 (FY24). The startup registered a net profit of INR 43.7 Lakh in FY24 as against a net loss of INR 12.83 Cr in the previous fiscal, according to DevX’s draft red herring prospectus (DRHP). 

The startup turned profitable on the back of a significant increase in its revenue operations. Operating revenue zoomed 55% to INR 108.08 Cr during the year under review from INR 69.91 Cr in the previous fiscal year. 

Including other income, total income stood at INR 110.73 Cr as against INR 71.36 Cr in FY23.

DevX, which is a subsidiary of listed IT company Dev IT, filed its IPO papers on September 30. Its IPO will comprise solely of a fresh issue of 2.47 Cr equity shares. The shares will be listed on the NSE and the BSE. As per reports, DevX is looking to raise INR 125 Cr from the public issue. 

Founded in 2017 by Parth Shah, Rushit Shah and Umesh Uttamchandani, the startup provides coworking space solutions, managed office spaces, workspace solution offerings, among others. 

It operates coworking spaces in 12 cities, including Delhi NCR, Jaipur, Mumbai, Indore, Ahmedabad, among others. It counts the likes of Zomato, WhiteOak, Tim Hortons, Hitachi, Darwinbox, among others, as its clients. 

DevX plans to use the proceeds from the IPO to open new coworking centres in Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Vadodara, Rajkot, Surat, Goa and Jaipur in the next three years. 

Where Did DevX Spend?

The Ahmedabad-based coworking space provider’s total expenses rose 37% to INR 119.50 Cr in FY24 from INR 87.49 Cr in the previous fiscal year. Here’s a breakdown of the expenses: 

Depreciation & Amortisation: This was the biggest  expense for the startup, with the cost under this head jumping 50% to INR 45 Cr from INR 30 Cr in FY23. 

Cost Of Goods & Services: DevX’s spending under this head declined 15% to INR 20.22 Cr from INR 23.75 Cr in FY23. 

Finance Costs: The startup’s spending in this bucket increased 79% to INR 31 Cr in FY24 from INR 17.28 Cr in FY23.

Employee Benefit Expenses: Employee costs rose 12% to INR 7.53 Cr from INR 6.74 Cr in FY23. Employee costs comprise salaries and wages, gratuity, PF and other expenses.

Other Expenses: The startup’s other expenses, which included rent, legal, repair, postage and telephone expenses, among others, went up 64% to INR 15.74 Cr from INR 9.61 Cr in the previous fiscal year. 

The startup’s bid to get listed comes at a time when a number of coworking space providers are making a beeline to the bourses. Besides DevX, Smartworks also filed its DRHP with SEBI earlier in the year. 

Meanwhile, Peak XV Partners-backed Awfis made its public market debut in May this year, listing on the BSE at a premium of 12.8% to the issue price. Since listing, the startup’s share price has surged over 50%.

Last month, Inc42 exclusively reported that IndiQube has also initiated its preparations for IPO. 

The post IPO-Bound DevX Posts INR 44 Lakh Profit In FY24 appeared first on Inc42 Media.

Reliance Retail-owned hyperlocal search engine Justdial’s net profit jumped 115% to INR 154.07 Cr in the quarter ended September 30, 2024 (Q2 FY25) from INR 71.79 Cr in the year-ago quarter. 

On a sequential level, Justdial’s profit increased 9% from INR 141.22 Cr in Q1 FY25. 

The growth in operating revenue was subdued in the quarter. Justdial’s revenue from operations stood at INR 284.83 Cr during the quarter under review, up 9.3% from INR 260.61 Cr in Q2 FY24. Sequentially, it grew 1.5% from INR 280.57 Cr in the previous quarter.

However, the company’s total income jumped 25% to INR 398.44 Cr in Q2 FY25 from INR 318.53 Cr in the year-ago quarter, as other income nearly doubled.

The company’s other income for the quarter stood at INR 113.61 Cr, up 96% from INR 57.92 Cr in Q2 FY24.  

Justdial said that the other income in the quarter included fair value gain on financial instruments and profit from sale of investments. While fair value gain stood at INR 99.80 Cr as against INR 50.73 Cr in Q2 FY24, profit on sale of investments stood at INR 6.4 Cr in Q2 FY25 as against INR 1.03 Cr in the year-ago quarter. The company said its deferred revenue stood at INR 515.5 Cr, up 10% year-on-year (YoY). 

“Sequential growth was led by higher MTM (mark to market) gains on treasury portfolio due to decline in bond yields during the quarter,” the company said in a statement.

The company’s EBITDA for the quarter stood at INR 82.1 Cr, up 68% year-on-year (YoY). EBITDA margin increased to 28.8% from the 18.7% in the year-ago quarter. 

Meanwhile, Justdial managed to reduce its expenses in the quarter on a year-on-year basis. Its expenditure stood at INR 216.88 Cr in the quarter, a decline of 4% from INR 226.43 spent in the year-ago quarter. 

In the quarter, it saw its employee benefits go down 5% to INR 174.52 Cr from INR 185.38 Cr in the year-ago quarter. On a sequential basis, the employee expenses went up slightly from INR 172.87 Cr spent in the previous quarter.

The company attributed the growth in EBITDA margin to top line growth and cost efficiencies. 

The total traffic for Justdial in the second quarter of the ongoing fiscal stood at 198 Mn, up 15.3% YoY and 9.3% sequentially. Of this, the company attributed 85.4% of its total traffic coming in from mobile platforms, 11.8% from desktops or personal computers and 2.8% from its voice platforms.

Further, it also witnessed a 15% YoY increase in its active listings in the quarter. The search engine had 46.2 Mn listings on September 30, 2024. Out of the total listings, 30.8 Mn listings were geocoded. 

“Our innovative, integrated marketing campaigns—spanning digital and traditional channels like web, print, social media, physical meetup, and email—have successfully boosted our engagement with vendors. We’re not only achieving new revenue milestones but are also making significant investments in advanced technologies, including AI, to further enhance the value we deliver to both users and businesses,” Justdial’s CGO Shwetank Dixit stated in his comment on the results. 

Shares of Justdial ended today’s trading session 2.96% higher at INR 1307.10 on the BSE.

The post Justdial Q2 Profit Doubles To INR 154 Cr appeared first on Inc42 Media.

Update | October 12, 08:20 PM: The headline and the article have been edited to clearly explain the impact of sale of Navi Finserv’s former subsidiary Chaitanya India Fin Credit Private Limited.

Flipkart cofounder Sachin Bansal-led fintech startup Navi Technologies’ subsidiary Navi Finserv’s consolidated operating revenue stood at INR 1,906.2 Cr in the financial year 2023-24 (FY24) as against INR 2,040.6 Cr in FY23. 

However, the numbers are not comparable as the FY23 numbers also included income from Navi Finserv’s former subsidiary Chaitanya India Fin Credit Private Limited. The startup divested its entire stake in the subsidiary during FY24. 

Excluding the revenue of Chaitanya India in FY23, Navi Finserv’s operating revenue rose about 48% from INR 1,283 Cr. 

Meanwhile, following the sale of the subsidiary, the consolidated profit after tax (PAT) from continued operations slipped 56% year-on-year (YoY) to INR 115.6 Cr in FY24. 

The profit from discontinued operations stood at INR 429.5 Cr.

Including the profit of Chaitanya, the startup’s total consolidated net profit also more than doubled to INR 545.1 Cr in FY24 from INR 264.2 Cr in the previous year.

In August 2023, Ananya Birla-led Svatantra Microfin Pvt Ltd signed a definitive agreement to acquire Chaitanya for INR 1,479 Cr and completed the acquisition in November 2023. 

Earlier, Bansal acquired Chaitanya Rural Intermediation Development Services (CRIDS) via BAC Acquisitions (now Navi Technologies) in 2019. CRIDS was later rebranded as Chaitanya India Fin Credit. The acquisition helped Navi acquire an NBFC licence. However, the Reserve Bank of India (RBI) rejected Chaitanya India Fin Credit’s application for an ‘on tap’ universal banking licence in 2022.

Navi Finserv was incorporated in 2012 and provides various kinds of loans, including personal, vehicle, and home loans. A majority of its revenue comes from interest income on loans, investments, and deposits with banks.

On a standalone basis, the startup’s total interest income grew nearly 36% to INR 1,611.1 Cr from INR 1,180.8 Cr in FY23. Its net gain on derecognition of financial instruments under amortised cost category almost doubled to INR 102.4 Cr during the year under review from INR 51.7 Cr in the previous year.

Navi Finserv’s total asset under management (AUM) stood at INR 8,527.2 Cr in FY24 growing from INR 6,791 Cr at the end of FY23. The startup also had total loan disbursements worth INR 16,006 Cr in FY24 as against INR 12,630 Cr the year before.

Zooming Into Expenses

Though not comparable, Navi Finserv’s total expenses saw a marginal increase to INR 1,750.4 Cr in the reported year from INR 1,743.9 Cr in FY23, with finance cost alone comprising over 37% of its total spending.

Finance Cost: The startup’s finance cost declined about 5% to INR 657.7 Cr in FY24 from INR 691.6 Cr in the year before.

Employee Cost: Navi Finsev cut its employee benefit expenses by a massive 42% to INR 149.9 Cr in FY24 from INR 257.9 Cr in the year before.

It spent INR 120.3 Cr on salaries, wages and bonuses in the year under review as against INR 217.1 Cr the previous year.

The decline could be attributed to the sale of Chaitanya. On a standalone basis, expenses under this bucket increased 77% YoY to INR 149.9 Cr in FY24.

Loans Written Off: The company’s spending on loan write-offs jumped to INR 406.2 Cr in FY24 from INR 125.4 Cr in the year before on a consolidated basis.

On a standalone basis, the loans written off saw a bigger jump of 275% YoY.

Overall, its impairment on financial instruments stood at INR 495.6 Cr in FY24.

“Our AUM growth scaled up in the last two quarters of FY23 leading to passover of P&L impact in FY 24. At the overall level, our credit costs for FY24 is at 6.7% of average quarterly AUM as compared to 7% of average quarterly AUM for FY23. Provision coverage ratio for FY24 stands at about 88% vis-a-vis about 83% for FY23,” said Navi Finserv in a statement. 

Software Support Charges: Navi Finserv’s spending under this head grew over 50% YoY to INR 248.2 Cr in FY24.

Navi Finserv converted into a public entity in March 2022. Its holding company Navi Technologies got SEBI’s nod for IPO but didn’t go ahead with public listing plans.

In July this year, Navi Finserv did a final close of a $38 Mn personal loans securitisation deal with JP Morgan. 

Earlier this year, the company also raised INR 150 Cr via bond issuance from several investors, including Dadachanji Group chairman Kairus Shavak Dadachanji, Pervin Kairus Dadachanji, and Rishad Kairus Dadachanji. 

The post Navi Finserv Posts INR 1,906 Cr Revenue In FY24 After Sale Of NBFC Subsidiary appeared first on Inc42 Media.

D2C skincare brand Minimalist’s net profit more than doubled in the financial year ended March 31, 2024. The startup’s profit zoomed 110% to INR 10.9 Cr in the financial year 2023-24 (FY24) from INR 5.2 Cr in FY23 on the back of a strong growth in its top line.

Founded in 2020 by Mohit Yadav and Rahul Yadav, the skincare brand retails its products through its own website and online marketplaces such as Amazon, Nykaa, Flipkart, and Myntra. It earns revenue from the sale of its skincare, haircare and body care products.

As per the filing of Uprising Science Pvt Ltd, which operates Minimalist, with the Ministry of Corporate Affairs, the startup’s revenue from operations surged 89% to INR 347.4 Cr during the year under review from INR 183.8 Cr in FY23.

Including other income, the D2C brand’s total income rose 86% to INR 349.6 Cr in FY24 from INR 188.1 Cr in the previous fiscal year.

Zooming Into Expenses

The rise in Minimalist’s expenditure was largely in line with the growth in its sales. Total expenses jumped 84% to INR 331.7 Cr in FY24 from INR 180.2 Cr in the previous fiscal year.

Cost Of Materials Consumed: The startup spent INR 101.5 Cr on purchase of stock-in trade, an increase of 43% from INR 71.2 Cr in FY23.

Employee Benefit Expenses: Employee costs zoomed 56% to INR 28.5 Cr during the year from INR 18.3 Cr in FY23.

Advertising Promotional Expenses: The D2C brand’s biggest expense was advertising costs. It spent INR 117.1 Cr under the head in FY24, up 79% from INR 65.3 Cr in FY23.

Minimalist has raised a total funding of over $17 Mn till date and counts the likes of Peak XV Partners, Unilever Ventures, among others, as its backers. It competes with startups like WOW Skin Science, Plum, mCaffeine, among others.

The post D2C Brand Minimalist’s FY24 Profit Doubles To INR 10.9 Cr, Revenue Up 1.9X YoY appeared first on Inc42 Media.

Coming off of a loss-making fiscal, Bengaluru-based D2C furniture and mattress startup Wakefit claims to have attained EBITDA profitability in the fiscal year 2023-24 (FY24). 

In a statement, the startup claimed to have registered an EBITDA profit of INR 65 Cr in the fiscal. 

With this, it said to have managed to return back to profitability for the first time in the past four years. Besides, it also claimed to have witnessed a 24% jump in its revenue in the fiscal, touching INR 1,017 Cr. 

Pertinent to note that the startup didn’t disclose the profit or loss it incurred in the fiscal. Inc42 couldn’t independently verify the company’s financial report for FY24. 

“Returning to profitability with an EBITDA of INR 65 crore is a testament to the resilience of our business model and the efficiency of our operations. As we prepare for the next phase, we will focus on sustaining this profitability while scaling our business, ensuring that our long-term growth trajectory remains strong,” Wakefit’s cofounder and CEO Ankit Garg said. 

Founded in 2016 by Garg and Chaitanya Ramalingegowda, Wakefit offers a range of sleep and home-related products, including mattresses, pillows, bed frames, mattress protectors, sofas, study tables, bookshelves, shoe racks, and TV units. 

Since inception, the startup says that it has served over 8.5 Mn customers. The startup has raised over $148 Mn since inception from the likes of Investcorp, Peak XV, Investcorp.

The startup also expanded into home decor, lighting, furnishings, among others to expand its portfolio to over 100 categories. 

In addition to its own website, the startup distributes its products through retail stores and e-commerce marketplaces such as Flipkart and Amazon. Moving forward, Wakefit said that it will work on building its offline presence. The startup plans to increase its store count to 120 from the current 80 stores across 26 cities in the next six months. 

The Peak XV-backed startup claims profitability in the fiscal year after it plunged deeper into losses in FY23. For the fiscal prior, the startup reported a net loss of INR 146 Cr, up 37% from the INR 107 Cr loss it incurred in FY22. 

In the prior fiscal, its revenue from operations stood at INR 813 Cr, up 28% from FY22. Further, its total expenses increased 30% to INR 965.6 Cr in FY23 from INR 743.5 Cr in the previous fiscal year.

While cost of material was the biggest contributor in the startup’s expenses in the previous fiscal, its advertising expenses also went up in the fiscal. The startup spent INR 95.9 Cr in FY23 for brand building, up 57% from the previous fiscal.

As a result, the startup claims that its “top of mind awareness” grew by nearly 40% in FY24. It said that it will double down on its brand building exercise moving forward to fuel its next stage of growth.

The post Wakefit Claims EBITDA Profitability In FY24, Revenue Jumps 24% To INR 1,017 Cr appeared first on Inc42 Media.

IPO-bound Swiggy managed to narrow its loss by 44% in the financial year ended March 31, 2024. The decacorn startup incurred a net loss of INR 2,350 Cr in the financial year 2023-24 (FY24) as against a loss of INR 4,179.3 Cr in FY23. 

In the first three months of the ongoing financial year – FY25, the Prosus-backed startup reported a loss of INR 611 Cr. 

Meanwhile, Swiggy’s operating revenue zoomed 36% to INR 11,247.3 Cr in FY24 from INR 8,264.5 Cr in the previous year, on the back of growth of its quick commerce business – Swiggy Instamart. 

Swiggy earns revenue from its food delivery business, quick commerce business, restaurant reservation and events ticketing platform – DineOut and SteppingOut, and supply chain services provided to wholesalers among others.

• The food delivery business generated a total operating revenue of INR 5,160 Cr in FY24, a 25% increase from INR 4,129.9 Cr a year ago 
• The quick commerce business reported an operating revenue of INR 978.5 Cr in FY24, almost 2X growth from INR 451.3 Cr in the previous fiscal year 
• The out of home consumption business, which comprises DineOut and SteppingOut, posted an operating revenue of INR 157.1 Cr, an increase of 102% from INR 77.6 Cr in FY23 
• Swiggy’s platform innovation business, which includes Swiggy Minis, Swiggy Genie, and its private labels, contributed INR 171.9 Cr in revenue, a 46% drop from INR 319.2 Cr in the previous fiscal year 

Including other income, the startup reported a total revenue of INR 11,634.3 Cr in FY24, up 33% higher from INR 8,714.3 Cr in the previous fiscal.

In comparison, Swiggy’s listed rival Zomato reported a net profit of INR 351 Crin FY24 on an operating revenue of  INR 12,114 Cr.

Where Did Swiggy Spend?

The IPO-bound company managed to control the rise in its expenses. Total expenditure rose a mere 8% to INR 13,947.3 Cr in FY24 from INR 12,884.3 Cr in FY23. In the first three months of FY25, the startup’s total expenses stood at INR 3,907.9 Cr

Procurement Cost: As the startup doubled down on its quick commerce business, Swiggy’s procurement cost was the biggest expenditure in FY24. It accounted for almost 33% of the total expenditure. Procurement cost stood at INR 4,604 Cr in FY24, up 36% from INR 3,380.7 Cr in FY23. 

Employee Cost: This was the second largest cost head for Swiggy. However, employee benefit expenses declined 6% to INR 2,012.1 Cr in FY24 from INR 2,129.8 Cr in FY23. Cost of share-based payments stood at INR 596 Cr, a slight increase from INR 533.9 Cr in FY23. 

Advertising and Sales Promotion: Like any other startup trying to curb its losses, Swiggy also reduced its advertising expenses by 26% to INR 1,850.7 Cr in FY24 from INR 2,501 Cr in the previous fiscal year.

The startup’s EBITDA margin improved to -16.2% in FY24 from -46.4% in FY23. Adjusted EBITDA loss almost halved to INR 1,835.5 Cr in FY24 from a loss of INR 3,910.3 Cr in the previous year.

Founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, and Rahul Jaimini, Swiggy started off as a food delivery startup but later forayed into the quick commerce segment with Instamart.

After much anticipation, Swiggy publicly filed its IPO papers or draft red herring prospectus (DRHP) on Thursday (September 26). The public offer will comprise a fresh issue of shares worth INR 3,750 Cr ($450 Mn) and an offer for sale component of around 18.53 Cr shares..

Investors such as Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will sell shares as part of the OFS. While Accel India IV (Mauritius) Ltd will offload 1.05 Cr shares, Alpha Wave Ventures will sell 55.73 Lakh shares. 

The company plans to utilise the IPO proceeds for marketing and promotion, investing in technology and cloud infrastructure, funding inorganic growth through acquisitions and for general corporate purposes.

The post Swiggy DRHP: Revenue Crosses INR 10,000 Cr Mark In FY24, Loss Almost Halves appeared first on Inc42 Media.

Bengaluru-based OPEN seems to be struggling to scale up its operations. The neobanking startup’s operating revenue declined 17% to INR 24.8 Cr in the financial year 2023-24 (FY24) from INR 29.9 Cr in FY23.

Founded in 2017 by Jacob, Anish Achuthan, Ajeesh Achuthan, and Mabel Chacko, OPEN offers business banking, payments and expense management solutions to small and medium businesses (SMBs) across the country. It has three major products – OPEN Flo, OPEN Settl and OPEN Capital.

OPEN earns a majority of its revenue from the sale of services. The unicorn breaks down its revenue from operations into two major categories – subscription revenue and commission on services.

Including other income, the startup’s total revenue declined 13% to INR 46.1 Cr from INR 53.1 Cr in FY23. 

With the decline in revenue, the Temasek-backed startup’s net loss also reduced 30% to INR 170 Cr during the year under review from INR 242.2 Cr in the previous fiscal year.

Where Did OPEN Spend?

The startup’s total expenditure dropped 34% to INR 194.6 Cr in FY24 from INR 296.5 Cr in FY23. 

Employee Benefit Expenditure: Despite a 22% year-on-year decline, employee cost was the biggest expenditure for the startup. It spent INR 117 Cr under the head in FY24 as against INR 149 Cr in the previous fiscal year. 

Information Technology Expense: Information technology cost stood at INR 23.8 Cr in FY24, a decline of 16% from INR 28.5 Cr in FY23. 

Advertising Expenditure: The startup slashed its advertising expenditure by a whopping 85% to INR 8.8 Cr from INR 57.6 Cr in FY23. 

Despite the decline in total expenses, OPEN spent INR 7.84 to earn every rupee from operations. OPEN currently claims to process over $30 Bn in annualised transactions. 

In December last year, the startup received the final approval from the Reserve Bank of India (RBI) to operate as a payment aggregator. 

OPEN entered the unicorn club in May 2022 after raising $50 Mn from existing investor IIFL. The startup has raised a total funding of $190 Mn till date. It counts Temasek, 3one4 Capital, SBI Investment, and Tiger Global among its backers. 

It competes against the likes of Oxyzo, Yubi, and Navi.

The post OPEN Spent INR 195 Cr To Earn INR 25 Cr Revenue In FY24 appeared first on Inc42 Media.

KrazyBee, the non-banking financial company (NBFC) arm of lendingtech startup KreditBee, saw its net profit more than triple to INR 200.3 Cr in the financial year 2023-24 (FY24) from INR 65.1 Cr in the previous fiscal year.

On the back of a sharp rise in its interest income, KrazyBee (KB NBFC) also saw a whopping 95% jump in its operating revenue to INR 1,399.2 Cr during the year under review from INR 717 Cr in FY23.

Launched in 2018 by Madhusudan Ekambaram, Karthikeyan Krishnaswamy, and Vivek Veda, KreditBee serves credit and other personal finance requirements. As its subsidiary, KB NBFC serves as one of the lending partners of KreditBee.

KB NBFC earns a majority of its revenue from interest income, followed by fee and commission income. The NBFC earned INR 1,225.8 Cr as interest income, which surged over 156% year-on-year (YoY) in FY24.

However, its fee and commission income declined 1.1% YoY to INR 168.8 Cr in the reported fiscal due to a fall in service fees.

KB NBFC’s total revenue stood at INR 1,400.2 Cr in FY24 as against INR 717.7 Cr in the previous year. 

KB NBFC said in its financials filing that it raised funds of around INR 3,450 Cr in FY24 via different routes, including secured non-convertible debentures and term loans/ working capital loans, among others.

It is pertinent to note that KB NBFC secured INR 268 Cr in debt funding from Yubi, Dzerv, Neo Group, OfBusiness, Oxyzo, and others between April and June this year. Inc42 reported that the fresh funds were likely to be used for working capital needs and to expand the business. 

In fact, continuing the strong growth, the NBFC;s operating revenue almost doubled YoY to INR 509.5 Cr in the quarter ended June 2024. 

Where Did It Spend?

KB NBFC’s total expenses surged 80% to INR 1,131.9 Cr in FY24 from INR 630.2 Cr in the previous year.

Impairment On Financial Instruments: The company’s expenses under this head jumped to INR 431.9 Cr during the year under review from INR 248.5 Cr in FY23.

It included financial instruments measured at amortised cost loans and at fair value financial guarantee contracts.

Employee Cost: KB NBFC spent INR 188.3 Cr towards employee benefit expenses during FY24, which grew a whopping 400% from INR 37.4 Cr the year before.

In that, INR 128.6 Cr was spent on salaries and wages, while INR 52 Cr was given as share based payments to employees.

Deficiency Recovery Expense: The lending firm spent INR 26.7 Cr under this bucket in FY24, which was nil last year.

KB NBFC is a regulated entity under the purview of the Reserve Bank of India (RBI). In early 2023, the central bank slapped a penalty of INR 42.48 Lakh on the fintech startup for allegedly harassing borrowers for debt collection. 

The post KreditBee’s NBFC Arm Posts INR 200 Cr Profit In FY24, Operating Revenue Almost Doubles appeared first on Inc42 Media.

Omnichannel jewellery brand BlueStone managed to narrow its loss by almost 15% year-on-year (YoY) to INR 142.2 Cr in the financial year 2023-24 (FY24), while its operating revenue surpassed the INR 1,000 Cr mark.

The startup had posted a net loss of INR 167.2 Cr in FY23 on an operating revenue of INR 770.7 Cr. 

BlueStone’s operating revenue surged over 64% YoY to INR 1,265.8 Cr in FY24.

Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, BlueStone earns revenue by selling jewellery online and through its retail stores. It claims to offer over 8,000 designs across a range of jewellery – from rings and pendants to earrings and more.

The startup owns some of its retail stores and operates the rest via a franchise model. It claims to have over 200 retail stores spread across the country.  

It is pertinent to note that in FY22, BlueStone incurred a one-time non-operating expense of INR 1,209 Cr, as a result of which its net loss shot up to INR 1,268.4 Cr in that year. Excluding this one-time expense in FY22, the startup’s net loss had increased 183% YoY in FY23.

BlueStone now seems to have started focusing on improving its top line as well as bottom line ahead of its IPO.

“Company has been successful in growing revenue in existing stores during the year which has resulted in improved margins. The company thus expects further improvement in its cash flow from operations through increase in revenue from its existing as well as new customers,” it said in its filing with the Ministry of Corporate Affairs (MCA).

Including interest income, BlueStone recorded a total revenue of INR 1,303.5 Cr in FY24 as against INR 787.9 Cr in FY23.

Zooming Into Expenses

With growing sales, BlueStone’s expenses also increased over 51% to INR 1,445.7 Cr in FY24 from INR 955.1 Cr posted in the year before. 

Cost of Materials Consumed: This accounted for 85% of the total spending of the jewellery brand during the year under review. 

BlueStone spent INR 1,234.7 Cr on procurement of raw materials in FY24, an increase of 72% from INR 717.6 Cr in the previous year.

Employee Cost: The startup’s spending towards employee benefit expenses jumped 51.7% to INR 138.4 Cr in the reported year from INR 91.2 Cr in FY23.

In that, BlueStone spent INR 95.6 Cr on salaries and wages in FY24, which grew about 56% YoY. This indicates that the startup likely increased its headcount during the year under review.

Advertisement & Marketing Cost: BlueStone’s spending in this bucket zoomed to INR 124.2 Cr in FY24 from INR 84.1 Cr in the previous year.

BlueStone raised INR 900 Cr from Peak XV Partners, Prosus, Steadview Capital, and others in its pre-IPO round in August, which took its valuation to $970 Mn. 

In June, it also raised INR 100 Cr in debt funding from Neo Markets. 

Overall, BlueStone has raised a total funding of over $200 Mn till date. It counts the likes of Accel, Kalaari Capital, Ratan Tata, Deepinder Goyal, and Nikhil Kamath among its backers.

BlueStone competes with the likes of CaratLane, GIVA, Melorra, and other legacy jewellery brands.

While reports about the startup’s IPO plans have been doing rounds for some time, it is yet to announce the exact timeline for its IPO.

The post BlueStone FY24: Revenue Surpasses INR 1,000 Cr Mark, Loss Narrows 15% To INR 142.2 Cr appeared first on Inc42 Media.

Universal Sportsbiz Private Limited (USPL), which operates Virat Kohli and Accel-backed youth fashion brand WROGN, seems to be struggling to scale up its sales. The startup’s operating revenue slumped 29% to INR 243.8 Cr in the financial year 2023-24 (FY24) from INR 344.3 Cr in the previous fiscal year.

Including other income, the startup’s total income declined 27% to INR 264.7 Cr in FY24 from INR 361.3 Cr in FY23.

Founded in 2014 by the brother-sister duo of Anjana Reddy and Vikram Reddy, WROGN is a D2C omnichannel men’s fashion brand which sells a wide range of casual wear, footwear and accessories. Earlier this year, Aditya Birla Group’s fashion and lifestyle venture TMRW acquired a 16% stake in Universal Sportsbiz Private Limited (USPL) for INR 125 Cr (about $15 Mn) in an all-cash deal.

In its filing with the Ministry of Corporate Affairs, the startup said it is “optimistic about the company’s business and hopeful of better performance with increased revenue in next year”.

Despite the decline in revenue, WROGN’s net loss rose 28% to INR 56.8 Cr during the year under review from INR 44.3 Cr in FY23. 

Zooming Into Expenses: Amid the decline in sales, WROGN’s total expenses fell 25% to INR 305.5 Cr in FY24 from INR 405.6 Cr in the previous fiscal year.

Purchases Of Stock-In-Trade: Purchases of stock-in-trade continued to be the biggest expense for the startup. WROGN spent INR 126.7 Cr for purchases of stock-in-trade in FY24, an increase of 7% from INR 198.6 Cr in the previous fiscal year.

Advertising Promotional Expenses: The startup reduced its advertising and promotional expenses marginally to INR 29.7 Cr in FY24 from INR 32.1 Cr in the previous year.

Employee Benefit Expenses: WROGN’s employee benefit expenses declined 7% to INR 32.3 Cr in FY24 from INR 34.9 Cr in FY23.

WROGN has raised around $90 Mn in funding till date and counts the likes of Accel, Flipkart, Kohli, and Sachin Tendulkar among its backers. It competes with the likes of Roadster, and HRX, in the country’s crowded fashion market.

The post Virat Kohli-Backed WROGN’s FY24 Revenue Falls 29% To INR 244 Cr, Loss Up 28% appeared first on Inc42 Media.

Mumbai-based beauty ecommerce marketplace Purplle’s revenue inched closer towards the INR 700 Cr mark in the financial year ended March 31, 2024. The Abu Dhabi Investment Authority (ADIA)-backed unicorn reported an operating revenue of INR 679.6 Cr in the financial year 2023-24 (FY24), an increase of 43% from INR 475 Cr in the previous fiscal year. 

The ecommerce marketplace primarily earns revenue through listing of products on its website. It earned INR 392.9 Cr through this in FY24, an increase of 72% from INR 227.9 Cr in the previous year. 

Besides this, income from sale of products rose 16% to INR 286.65 Cr during the year under review from INR 247 Cr in FY23. 

Founded in 2012 by Manish Taneja and Rahul Dash, Purplle sells beauty products and appliances. It sells products of several D2C brands, including Plum, WOW Skin Science, mCaffeine, Maybelline and SUGAR Cosmetics, on its platform. Beside, it also sells products under its private labels – Faces Canada and Good Vibes. 

Purplle managed to reduce its cash burn during the year under review, as a result of which its net loss plummeted 46% to INR 124.1 Cr from INR 230 Cr in FY23.

Where Did Purplle Spend?

Despite the 43% increase in its top line, Purplle’s total expenditure rose only 15% year-on-year. Its expenses stood at INR 849.6 Cr in FY24 as against INR 738.3 Cr in the previous fiscal year. 

Advertising Expenditure: Being an ecommerce marketplace, one of the biggest expenditures for the startup is advertising cost. At INR 209.4 Cr, Purplle’s advertising expenses accounted for 25% of its total expenses in FY24. However, the startup lowered the spending on advertising by 21% compared to the INR 266.5 Cr it spent in FY23.

Procurement Cost: Purplle spent INR 118.2 Cr under this head, an increase of 43% from INR 82.8 Cr in FY23. 

Employee Cost: Employee benefit expenses rose 21% to INR 191 Cr in FY24 from INR 170.5 Cr in the previous fiscal. This is an indication that the startup increased its employee headcount during the year. 

Purplle’s EBITDA margin improved to -12.5% in FY24 from -41.6% in FY23. 

Earlier this year, the startup bagged INR 1,000 Cr in a funding round led by a subsidiary of ADIA. The round was a mix of primary and secondary share sale and valued the startup at its last valuation of about $1.2 Bn – $1.3 Bn. 

Purplle has raised a total funding of about $400 Mn till date and counts the likes of Peak XV Partners, Premji Invest, and Ranjan Pai among its backers. 

The post Purplle’s FY24 Sales Zoom 43% To INR 680 Cr, Loss Almost Halves appeared first on Inc42 Media.

IPO-bound OYO turned profitable in the financial year 2023-24 (FY24) as it managed to control its expenses by trimming its employee costs. The unicorn posted a net profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in the previous financial year. OYO announced last month that it became profitable in FY24.

However, its operating revenue remained almost flat during the year under review. Revenue from operations stood at INR 5,388.7 Cr in FY24, a decline of 1.3% from INR 5,463.9 Cr in the previous fiscal year, as per its filings with the Ministry of Corporate Affairs.

Last month, the startup said that while its hotel count grew to 18,103 at the end of FY24 from 12,938 hotels a year ago, the new hotels will take time to achieve their full potential.

Including other income, OYO’s total revenue declined 1% to INR 5,541.5 Cr from INR 5,601.7 Cr in FY23. 

Founded in 2012 by Ritesh Agarwal, OYO is a hospitality startup and claims to offer over 40 integrated products and solutions to patrons who operate more than 157K hotels and home storefronts in more than 35 countries, including India, Europe, and Southeast Asia.

Where Did OYO Spend?

The startup managed to reduce its total expenditure by 16% to INR 5,725.7 Cr in FY24 from INR 6,799.6 Cr in the previous fiscal year. 

Lease Costs: OYO’s biggest expenditure was its lease costs, which accounted for 46% of the overall costs. This expense included service lease component and lease rentals. However, lease costs dropped 8% to INR 2,629.5 Cr from INR 2,843.3 Cr in FY23.  

Employee Costs: The primary reason behind the decline in total expenditure was the reduction in employee costs. Employee benefit expenses fell 52% to INR 744.3 Cr in FY24 from INR 1,548.8 Cr in the previous fiscal year. This decline was due to a 71.3% fall in employee share based expenses to INR 180.6 Cr in FY24 from INR 630.3 Cr in the previous fiscal year.

Finance Costs: OYO’s finance cost rose 24% to INR 843.8 Cr during the year under review from INR 681.5 Cr in the previous fiscal year. 

Last month, Agarwal said OYO is looking to triple its profit after tax (PAT) to INR 700 Cr in FY25. 

Recently, OYO raised INR 1,457 Cr (around $175 Mn) in a down round led by Agarwal floated Singapore-based entity Patient Capital, along with J&A Partners and ASK Financial Holdings.

The latest funding saw OYO’s valuation fall to $2.37 Bn from $10 Bn at its peak in 2019. The round also included July’s INR 417 Cr investment from InCred in OYO. 

While OYO has been eyeing a public market listing for some time, its IPO has been deferred a couple of times now. Sources told Inc42 that the plans are likely to be pushed back further as the company awaits the terms of the refinancing deal for the $660 Mn Term Loan B availed by founder and CEO Agarwal to buy back shares from investors in 2019. 

As it prepares for its public listing, here’s a deeper look at the executives responsible for the startup’s growth. 

The post OYO Turns Profitable With INR 229 Cr PAT In FY24 As Employee Costs Halve appeared first on Inc42 Media.

The B2B arm of Tata-owned quick commerce giant BigBasket, Supermarket Grocery Supplies Private Limited, narrowed its consolidated net loss 20.7% year-on-year (YoY) to INR 1,415.2 Cr in the fiscal year 2023-24 (FY24), as it managed to control its expenses.

It had reported a loss of INR 1,785.4 Cr in the previous fiscal year. 

Meanwhile, the company’s top line crossed the INR 10,000 Cr mark during the year under review. The quick commerce major’s B2B arm reported an operating revenue of INR 10,061 Cr in FY24, up 6% from INR 9,468 Cr in FY23. 

It is pertinent to note that the financial results of the B2B entity also include the numbers of BigBasket’s B2C subsidiary, Innovative Retail Concepts Private Limited. 

Supermarket Grocery’s subsidiaries include Innovative Retail, Savis Retail Private Limited, Delyver Retail Network Private Limited, and Dailyninja Delivery Services Private Limited.

Founded in 2011 by Hari Menon, VS Sudhakar, Vipul Parekh, VS Ramesh and Abhinay Choudhari, BigBasket started off as a grocery and hyperlocal delivery platform. In 2021, Tata Digital acquired a majority stake in the online grocer.

Under Tata’s tutelage, the platform is now pivoting to the quick commerce model, which it expects to complete by September 2024. Earlier this month, the company also reportedly began work on merging its BBdaily subscription service into its main app as part of its strategy to bolster quick commerce push.

Besides quick commerce, BigBasket has also been experimenting with enterprise tech tools to bolster its deliveries across verticals and help new businesses go online. The startup recently launched a SaaS based supply chain platform BB Matrix to help businesses manage their supply chains for deliveries.

It is pertinent to note that BigBasket operates as an online grocery store, making deliveries in three modes: one day delivery BBDaily, quick commerce vertical BBNow, and Slotted Delivery. 

Decoding BigBasket’s Expenses

BigBasket’s B2B arm reined in its expenses during the fiscal as total expenditure rose a mere 2% YoY to INR 11,515 Cr in the fiscal year ended March 2024. In FY23, the company’s total expenses stood at INR 11,284 Cr. 

Here is a breakdown of Supermarket Grocery Supplies’ biggest cost centres:

Purchases Of Stock-In-Trade: Expenses under this head rose 4% to INR 8,339 Cr in FY24 from INR INR 8,016 Cr in the previous fiscal year. 

Employee Benefit Expenses: Employee-related costs declined more than 11% to INR 936.5 in the fiscal ended March 2024 from INR 1,060 Cr in FY23. 

Advertising & Promotional Expenses: The B2B arm of BigBasket spent INR 330 Cr on advertising expenses in FY24, a decline of 14% from INR 385 Cr in FY23. 

Transportation Distribution Costs: Expenses incurred under this bucket rose more than 8% to INR 785.4 Cr in FY24 from INR 726.1 Cr in the fiscal year ended March 2023. 

Cost Technical Services: Expenses under this head rose 14.4% to INR 142.21 Cr during the year under review from INR 124.3 Cr in FY23.

Meanwhile, the B2C arm of BigBasket saw its loss narrow 17% to INR 1,267.2 Cr in FY24 from INR 1,535.2 Cr in the previous fiscal.

The post BigBasket B2B Arm’s Revenue Crosses INR 10K Cr Mark In FY24 appeared first on Inc42 Media.

Hyperlocal logistics startup Porter managed to narrow its net loss by 45% in the financial year ended March 31, 2024 due to lower cash burn. The Peak XV Partners-backed startup’s loss declined to INR 95.7 Cr in the financial year 2023-24 (FY24)  from INR 174.6 Cr in the previous fiscal year.

Operating revenue zoomed 56% to INR 2,733.7 Cr during the year under review from INR 1,737.4 Cr in the previous fiscal year. 

Porter offers B2B and B2C logistics service. It primarily earns revenue by providing transportation services through its own fleet. 

Including total income, the startup’s total revenue stood at INR 2,766.4 Cr in FY24, an increase of 54.5% from INR 1,789.4 Cr in the previous fiscal year. 

Founded in 2014 by Pranav Goel, Vikas Chaudhary, and Uttam Digga, Porter claims to provide distance-based allocation, GPS tracking, proactive notifications, and more, to empower its driver partners.

Where Did Porter Spend?

The startup’s total expenditure rose 46% to INR 2,862.1 Cr during the year under review from INR 1,964 Cr in the previous fiscal year. 

Fleet Operator Cost: This cost accounted for 83% of Porter’s total expenditure, rising 50% to INR 2,369 Cr from INR 1,578.8 Cr in FY23.

Employee Expenses: The second biggest expense for the startup was its employee costs. Porter spent INR 237.3 Cr on employee benefits in FY24, an increase of 24% from INR 190.9 Cr in the previous fiscal year. 

EBITDA margin improved to -2.93% in FY24 from -9.46% in the previous fiscal year. 

Porter has raised a total funding of about $132 Mn till date and counts marquee investors such as Tiger Global, Peak XV, Lightrock, and Kae Capital among its backers.

Earlier this year, Moneycontrol reported that Porter entered the coveted unicorn club following an internal funding round. However, the startup hasn’t provided any clarity on it till date. 

Porter competes against the likes of Shadowfax, Dunzo, Swiggy Genie, Pidge, among others.

The post Porter FY24: Loss Declines 45% To INR 96 Cr, Revenue Crosses INR 2,500 Cr Mark appeared first on Inc42 Media.

IPO-bound electric two-wheeler player Ather Energy’s operating revenue declined 1.5% year-on-year (YoY) to INR 1,753.8 Cr in the financial year 2023-24 (FY24), while net loss widened over 22% to INR 1,059.7 Cr.

As per the company’s DRHP filed with SEBI for more than INR 3,100 Cr IPO, Ather’s top line was hurt by the reduction in FAME subsidy provided by the government.

In FY23, Ather’s operating revenue had seen a sharp 335% YoY jump to INR 1,780.9 Cr. In line with the EV startup’s growth, its net loss also widened 2.5X YoY to INR 864.5 Cr.

On the reduction in revenue, Ather said in the DRHP, “Government of India has in the past recalled and scaled back, and may in the future recall or scale back, the benefits available to EV manufacturers under its schemes, increasing the costs borne by EV manufacturers. For example, pursuant to a notification dated May 19, 2023 from the Ministry of Heavy Industries, Government of India, the cap on incentives for the FAME scheme was scaled back from INR 15,000 per kWh to INR 10,000 per kWh, with effect from June 1, 2023. As a result of the reduced subsidy, our customers faced an increase in the retail price of our E2Ws ranging from INR 20,434 to INR 30,285. This contributed to a slight decrease in our revenue from operations.” 

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather is one of the leading Indian two-wheeler EV manufacturers. It also manufactures its own battery packs and operates its own charging network. After building its market on its 450 series of escooters, which comprises Ather 450S, Ather 450X, and Ather 450 Apex, the startup recently launched a family escooter series Rizta and also forayed into the smart helmet category.

Ather’s first model, Ather 450X – with its three variants – was the biggest contributor to the revenue in FY24. The total revenue generated by this series of vehicles stood at INR 1,283.8 Cr. In that, Ather 450X with 2.9 kWh capacity contributed 9% to the total operating revenue and Ather 450X with 3.7 kWh capacity contributed 31%.

Meanwhile, the startup generated INR 277.7 Cr in revenue from Ather 450S and INR 9.1 Cr from Ather 450 Apex.

In FY24, Ather sold 22,712 units of its Ather 450S, 86,315 units of 450X and 550 units of Ather 450 Apex. Ather Rizta’s deliveries began in the current fiscal year, from May 2024. 

While Ather’s sale of finished goods, comprising its escooters, increased in FY24, the sale of its stock-in-trade, comprising EV-related accessories, spare parts and merchandise plummeted almost 76% YoY.

The EV major’s sale of services, which it primarily derives from the sales of Pro Pack, which consists of Atherstack features, three years of access to Ather Connect features and the extended battery warranty, saw almost a 15% YoY decline during the year under review.

Zooming Into Expenses

Ather’s total expenses in FY24 stood at INR 2,674.2 Cr, rising marginally from INR 2,666.3 Cr in the previous year.

Cost Of Materials Consumed: The EV OEM spent the largest portion of its total expenses under this head, which increased 2.7% YoY to INR 1,579.2 Cr in FY24.

It comprised raw materials and components Ather buys from its vendors for use in the manufacturing of scooters. Besides, it outsources manufacturing of components like chassis, battery management system (BMS), vehicle control unit, motor controller, and raw materials.

Employee Cost: Ather’s total employee benefit expenses rose 10.3% to INR 369.2 Cr in FY24 from INR 334.8 Cr in the previous year.

The company had 1,458 on-roll employees and 996 off-roll employees as on March 31, 2024.

Advertisement & Marketing: Ather’s expenses under this bucket declined a massive 55% to INR 90.7 Cr during the year under review from INR 203.8 Cr in FY23.

The startup said that this reduction in marketing efforts was mainly done to optimise marketing spends, foreseeing a slowdown in consumer demand given the reduction of regulatory incentives under FAME-II.

R&D Expenses: Ather’s expenditure here increased to INR 236.5 Cr in FY24 from INR 191.6 Cr in the previous fiscal year.

Quick View Of The Proposed IPO

As per Ather’s DRHP submitted on Monday (September 9), its IPO will comprise INR 3,100 Cr worth of fresh issue and an OFS component of 2.2 Cr equity shares.

Cofounders Mehta and Jain will be offloading 10 Lakh shares each as part of the OFS. Among the other selling shareholders are Caladium Investments, National Investment and Infrastructure Fund II, and Tiger Global’s Internet Fund III. Hero MotoCorp, the biggest shareholder in Ather, will not sell any stake in the IPO.

Ather’s IPO comes on the heels of its competitor Ola Electric going public by raising over INR 6,145.6 Cr in total. 

Like Ola, Ather is also going public as a loss-making entity with no clear path projected to profitability. 

In fact, the recently turned unicorn said in its DRHP that its ability to achieve profitability, positive cash flows from operating activities and a net working capital surplus will depend on factors like cost control, increasing sales of escooters in India, Nepal, and Sri Lanka and any other international markets.

Recently, Ather expanded its business to Sri Lanka, marking its second overseas foray after Nepal.

“We cannot assure you that our expansion into international markets will be profitable, nor can we guarantee that our products can be sold at favourable margins,” the EV major said.

The post Ather Energy FY24: Revenue Declines On Reduction In FAME-II Subsidy, Loss Up 22% To INR 1,060 Cr appeared first on Inc42 Media.

Tata-owned BigBasket’s B2C arm, Innovative Retail Concepts, posted a 17% decline in its net loss to INR 1,267.2 Cr in the financial year 2023-24 (FY24) from INR 1,535.2 Cr in the previous fiscal, partially helped by its controlled expenses.

The online grocery retailer’s operating revenue saw about a 6% rise to INR 7,884.5 Cr during the year from INR 7,439.7 Cr in FY23, with revenue from the sale of traded products continuing to be the largest contributor.

BigBasket clocked INR 7,609.6 Cr in revenue from the sale of traded products, which included household and grocery products, as against 7,175.2 Cr in FY23. 

Meanwhile, its advertisement income increased a mere 0.5% year-on-year (YoY) to INR 230.7 Cr in FY24. Licence fees income remained flat, while rental income more than doubled to INR 11 Cr. BigBasket earns its rental income from operating leases on its vending machines.

Revenue from services stood at INR 256.8 Cr in FY24, which was an increase of 4.6% YoY. 

The company’s revenue from BB Star membership fees was included in revenue from services in FY24 filing and not mentioned separately.

It also saw INR 9.1 Cr coming in from two new revenue sources – commission Income and technology services income. The technology services income was generated from Tata Group’s Infiniti Retail, while commission income came from Tata 1mg Healthcare Solutions Private Limited.

It is pertinent to note that in 2021, Tata Digital Limited, a 100% subsidiary of Tata Sons Private Limited, acquired a majority stake in BigBasket’s holding company Supermarket Grocery Supplies Private Limited. In December 2022, Tata infused further capital in BigBasket.

BigBasket’s income from scrap sales declined 5.5% YoY to INR 18.1 Cr during the year.

Zooming Into Expenses

Total expenses rose a mere 2% to INR 9,185.7 Cr in FY24 from INR 8,997.6 Cr in the previous fiscal.

Purchases Of Stock-In-Trade: It continued to be the biggest contributor to overall expenses. The startup’s spending under this head saw a 3.4% rise to INR 6,260.9 Cr during the year under review from INR 6,053.4 Cr in FY23.

Employee Benefit Expenses: BigBasket cut its employee cost by 9.6% to INR 827.5 Cr in FY24 from INR 915.6 Cr in the previous fiscal year.

In that, INR 659.3 Cr was spent towards salaries and wages, which fell from about INR 690 Cr in FY23.

Training Recruitment Expenses: The company’s spending in this bucket fell by a massive 70% YoY to INR 2.1 Cr.

Ad Expenses: BigBasket’s advertising and promotional expenses declined 14.2% to INR 329.9 Cr in FY24 from INR 384.7 Cr the previous fiscal year. 

Transportation Cost: The startup spent INR 738.9 Cr under this head during the year under review as against INR 681.6 Cr in FY23.

Amid the rising popularity of quick commerce, BigBasket has also set its eye on the rapidly growing segment. It is planning to merge BBdaily subscription service into its main app in the coming months as part of the strategy to strengthen its position in quick commerce.

The post BigBasket FY24: B2C Arm’s Loss Narrows 17% To INR 1,267 Cr, Revenue Grows 6% appeared first on Inc42 Media.

Cloud kitchen unicorn Rebel Foods narrowed its net loss by 42% to INR 378.2 Cr in the fiscal year 2023-24 (FY24) from INR 656.5 Cr in the previous fiscal year.

The Faasos-parent trimmed its loss on the back of an increase in its top line and controlled expenses. Rebel Foods’ operating revenue jumped 19% to INR 1,420.2 Cr in FY24 from INR 1,195.2 Cr in FY23.

Founded in 2011 by Kallol Banerjee and Jaydeep Barman, Rebel Foods owns and operates multiple quick service restaurant (QSR) brands like Behrouz Biryani, Ovenstory Pizza, The Good Bowl, SLAY Coffee, among others. 

The startup primarily earns revenue from the sale of food items through its own cloud kitchens as well as those owned by third parties. It also earns via delivery charges and royalties through partnerships with other partners.

Rebel Foods’ revenue from the sale of food items stood at INR 1,373.7 Cr in FY24 while its revenue from services, which included commission and storage income and franchise income, stood at INR 31 Cr.

The startup operates over 450 kitchens spanning 80 cities in India. It is also present in the United Arab Emirates (UAE), Saudi Arabia, and the UK.

In May, the cloud kitchen startup secured INR 110 Cr in debt from Alteria Capital and InnoVen Capital. While Alteria pumped in INR 65 Cr, InnoVen invested INR 45 Cr in the debt round.

Zooming Into Rebel Foods’ Expenses

In FY24, Rebel Foods saw a mere 1.6% increase in its total expenses to INR 1,857 Cr from INR 1,827 Cr in the previous fiscal year. 

Here is a breakdown of some of the key expenditures incurred by the company during the fiscal: 

Cost Of Materials Consumed: Even though this was the biggest cost for the company, the expenses under this head rose only 5.8% to INR 613.3 Cr in FY24 from INR 577.5 Cr in FY23. 

Employee Benefit Expenses: Employee-related costs declined 2.6% to INR 394.9 Cr during the year under review from INR 405.5 Cr in FY23. 

Brokerages & Commissions: The startup spent INR 229.9 Cr on brokerages and commissions in the year ended March 2024 as against INR 163.3 Cr in the previous fiscal. However, it did not give any further details about these expenses. 

Advertising & Promotional Expenses: The foodtech unicorn spent nearly INR 133.7 Cr towards advertising, publicity and sales promotions in FY24, down 32% from INR 197.9 Cr in FY23. 

Legal Professional Costs: Expenses incurred under this bucket fell nearly 20% YoY to INR 19.3 Cr during the year under review from INR 24 Cr in FY23. 

Backed by the likes of Peak XV Partners, Coatue and Lightbox, Rebel Foods has raised more than $549 Mn in funding to date.

The post Rebel Foods FY24: Net Loss Nearly Halves To INR 378 Cr, Revenue Up 19% YoY appeared first on Inc42 Media.

Delhi NCR-based online meat delivery startup Zappfresh, which has become the latest tech startup to file a draft red herring prospectus (DRHP) for an IPO on BSE SME, posted a 70% year-on-year (YoY) jump in its net profit to about INR 4.7 Cr in the financial year 2023-24 (FY24).

Zappfresh turned profitable in the previous fiscal year with a net profit of INR 2.7 Cr as against a net loss of INR 2.5 Cr reported in FY22.

The IPO-bound startup’s operating revenue surged more than 60% to INR 90.4 Cr in FY24 from INR 56.3 Cr in FY23. It must be noted that its revenue was almost on a YoY basis in FY23.

Founded in 2015 by Deepanshu Manchanda and Shruti Gochhwal, Zappfresh is an online fresh meat and ready-to-cook/eat non-veg products retailer. It is a full-stack business where the meat delivery process starts from procuring fresh produce to processing, storage and delivery. 

While Zappfresh’s top line and bottom line improved in FY24, it’s way below the startup’s projections. It earlier said that it would clock an overall revenue of INR 300 Cr by the end of FY24, with Bengaluru alone contributing INR 70 Cr to it. 

As per the startup’s DRHP, its total revenue from Karnataka stood at INR 13.8 Cr in FY24. Zappfresh is operational only in Delhi NCR and Bengaluru.

Delhi continued to contribute the highest revenue and accounted for 35.7% of its operating revenue. It was followed by Haryana with 27.96% share in revenue.

Zappfresh operates in three segments of meat – chicken, mutton, and seafood. While the chicken business contributed INR 51.1 Cr to its revenue in FY24, growing 61.7% YoY, the mutton segment grew 50% YoY to clock INR 18.5 Cr in revenue.

The seafood business registered the biggest jump in revenue – over 68% YoY to INR 20.8 Cr during the year under review.

Zooming Into Expenses

Zappfresh’s total expenses increased over 54% to INR 83 Cr in FY24 from INR 53.8 Cr in the previous fiscal, with the cost of materials being the biggest expense driver.

Cost Of Materials Consumed: The startup’s spending under this head increased over 66% to INR 68.5 Cr during the year under review from INR 41.2 Cr in FY23.

Employee Cost: Zappfresh’s total employee benefit expenses increased to INR 1.4 Cr in FY24 from about 99 Lakh in the year-ago period.

In that, a little over INR 1 Cr was spent towards salaries and wages.

Ad Expenses: The startup spent INR 5.1 Cr towards advertisements in the reported period as against INR 3.2 Cr spent in this bucket a year ago.

Outsource Service Charges: Zappfresh spent INR 3.8 Cr under this head, which increased 46.6% YoY.

Amid a surge in IPOs in the Indian startup ecosystem, Zappfresh has become the latest startup to make the bid to go public. 

Its public issue comprises a fresh issue of 59.06 Lakh equity shares with a face value of INR 10 apiece. No existing shareholders are offloading their stake in the startup through an offer for sale component in the IPO.

The development comes days after Zappfresh acquired Mumbai-based online meat and seafood delivery brand Bonsaro to enter the western region of the country.

The post Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70% appeared first on Inc42 Media.

Tata-owned omnichannel jewellery startup CaratLane’s operating revenue crossed the INR 3,000 Cr mark in the fiscal year 2023-24 (FY24). Its revenue from operations rose 41% to INR 3,080 Cr during the year from INR 2,168 Cr in FY23.

Founded in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane is an omnichannel brand that manufactures and sells jewellery items in India. It earns revenue from the sale of jewellery.

Including other income, its total revenue rose nearly 42% year-on-year (YoY) to INR 3,106 Cr in the fiscal year ended March 2024.

However, its net profit declined nearly 5% to INR 78.59 Cr in FY24 from INR 82.08 Cr in the previous fiscal year due to rise in advertising and “miscellaneous” expenses during the year under review.

It is pertinent to note that CaratLane turned into a wholly-owned subsidiary of Tata-owned Titan in FY24. Titan acquired an additional 27.18% stake in CaratLane for INR 4,621 Cr at nearly INR 17,000 Cr valuation in August 2023, increasing its stake in the startup to over 99%. 

Later, Titan bought the remaining 0.36% stake in CaratLane for INR 60.08 Cr in February 2024. 

As per Titan’s financial results, CaratLane reported a total income of INR 754 Cr in Q1 FY25, which was an increase of 18% from INR 639 Cr in the year-ago period.

Zooming Into CaratLane’s Expenses 

CaratLane’s total expenditure in FY24 zoomed over 44% to nearly INR 2,992 Cr in FY24 from INR 2,068 Cr in FY23. 

Cost Of Materials Consumed: The expenditure under this head jumped 25% to INR 2,013.45 Cr in the fiscal year ended March 2024 from INR 1,606.42 Cr in FY23.

Purchases Of Stock-In-Trade: CaratLane saw its expenditures related to purchase of stock-in trade jump 46.8% to INR 243.59 Cr in FY24 from INR 165.93 Cr in the previous fiscal year.

Employee Benefit Expense: Employee costs jumped over 25% to INR 170.35 Cr during the year under review from INR 135.43 Cr in FY23. 

Other Expenses: Expenditure under this head rose 32% YoY to INR 579.75 Cr during the fiscal year ended March 2024. It included advertisement and promotional expenses, legal professional charges, miscellaneous expenditures, among others. 

• Advertisement & Promotional Expenses: CaratLane’s spending on advertising and marketing expenses zoomed 31% to INR 225.2 Cr in FY24 from INR 171.54 Cr in the previous fiscal year.
• Legal Professional Costs: Expenditure under this head rose to INR 39.34 Cr from INR 36.41 Cr in FY23.
• Miscellaneous Expenses: The cost under this head surged 42% to INR 239.86 Cr during the year under review from INR 168.62 in the fiscal year ended March 2023. However, the company did not give a breakdown of these expenses. 

CaratLane competes against the likes of legacy giants such as Kalyan Jewellers and Malabar Gold, as well as new-age brands such as BlueStone and GIVA. Just days ago, Bluestone raised INR 900 Cr as part of its pre-IPO round that saw participation from Peak XV Partners, Prosus, Steadview Capital, Think Investments and Pratithi Investments through a primary and secondary share sale.

The post CaratLane FY24: Profit Declines 5% To INR 79 Cr, Revenue Crosses INR 3,000 Cr Mark appeared first on Inc42 Media.

IPO-bound fintech unicorn MobiKwik turned profitable in the financial year 2023-24 (FY24), posting a net profit of INR 14.1 Cr as against a net loss of INR 83.19 Cr in the previous fiscal year on the back of strong business growth.

The fintech startup’s revenue from operations zoomed 62% to INR 875 Cr during the year under review from 539.5 Cr in the previous fiscal year.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a digital banking platform that offers a suite of financial products for both consumers and merchants. It earns revenue by offering online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, merchant cash advance, among other services, to businesses and merchants.

Including other income, the startup’s total income rose 59% to INR 890.3 Cr in FY24 from INR 561.1 Cr in the previous fiscal year.

Zooming Into Expenses

The fintech unicorn’s total expenses rose over 37% to INR 876.2 Cr in FY24 from INR 641.7 Cr in the previous fiscal year. Other expenses, including payment gateway costs, lending operation expenses, and advertising and promotional expenses, continued to account for the largest portion of expenditure.

Payment Gateway Cost: MobiKwik spent INR 270.3 Cr on payment gateway in FY24, a whopping 295% increase from INR 68.5 Cr in FY23.

Lending Operation Expenses: The startup spent INR 201.7 Cr under the head during the year under review, an increase of 29% from INR 156.7 Cr in FY23.

Employee Benefit Expenses: Employee costs increased 18% to INR 116 Cr in FY24 from INR 98.2 Cr in the previous fiscal year.

Advertising & Promotional Expenses: The startup spent INR 109.8 Cr on advertising promotional expenses during the year under review, an increase of 23% compared to INR 89 Cr in FY23.

Earlier this year, MobiKwik refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

The Delhi NCR-based startup is aiming to raise up to INR 700 Cr through a fresh issue of shares. The IPO will not include any offer for sale (OFS) component.

It is worth noting that MobiKwik has reduced its IPO size by nearly 63% from the INR 1,900 Cr it aimed to raise when it first filed its DRHP in 2021. At that time, the startup planned to raise INR 1,500 Cr from a fresh issue of shares and INR 400 Cr via OFS. However, it postponed its IPO plans due to volatile market conditions.

However, the bullish investor sentiment in the markets have led to a resurgence in startup IPOs this year. While the likes of Go Digit, Ola Electric, FirstCry, Awfis, Unicommerce have made their public market debut this year, a number of other new-age tech startups are also looking to go public over the coming months.

The post IPO-Bound MobiKwik Turns Profitable In FY24, Revenue Surges 62% To INR 875 Cr appeared first on Inc42 Media.

IPO-bound Smartworks’ net loss narrowed 51% to INR 49.8 Cr in the financial year 2023-24 (FY24) from INR 101.02 Cr in the previous year on the back of a strong business growth.

The startup, which recently filed its draft red herring prospectus (DRHP) for its IPO, saw its revenue from operations cross the INR 1,000 Cr mark during the year under review. Smartworks’ operating revenue zoomed 46% to INR 1,039.4 Cr in FY24 from INR 711.4 Cr in the previous fiscal year.

Founded in 2016 by Neetish Sarda and Harsh Binani, Smartworks is a shared workspace provider that offers customisable coworking solutions for enterprises.

At INR 997.1 Cr, the startup earned 96% of its revenue from lease rentals. This was an increase of 45% from INR 687.5 Cr it earned from lease rentals in FY23. Besides, it earned INR 42 Cr revenue from ancillary services in the last fiscal year.

Including other income, total income stood at INR 1,113.1 Cr in FY24 as against INR 744.1 Cr in the previous fiscal year.

Where Did Smartworks Spend?

The coworking startup’s total expenses rose over 34% to INR 1,180.7 Cr in FY24 from INR 880.2 Cr in the previous fiscal year, with operating expenses continuing to account for the largest portion.

Operating Expenses: The startup’s operating expenses increased 38% to INR 303 Cr in FY24 from INR 220.1 Cr in FY23.

The operating expenses primarily comprise housekeeping, security, support services, plantation and pest control, electricity and water charges, building maintenance, equipment and asset hire charges, commission and brokerage, communication expenses, lease rentals, freight and transportation and parking space charges.

The startup spent INR 34.9 Cr on commission and brokerage expenses, which it mentioned in its DRHP as one of the major cost drivers.

Finance Costs: In FY24, Smartworks spent INR 328.3 Cr on finance costs, an increase of 39% from INR 236.7 Cr in FY23. The finance costs primarily comprise interest expenses on lease liabilities, borrowings and financial liabilities and other finance costs such as interest on asset retirement obligations and others.

Employee Benefit Expenses: Employee costs increased 22%% to INR 49.6 Cr during the year under review from INR 40.8 Cr in FY23.

Smartworks had 651 employees as of March 31, 2024 against 564 employees a year ago, as per the DRHP.

A Quick Look At Smartworks IPO Plans

Smartworks IPO will comprise a fresh issue of equity shares worth INR 550 Cr and an offer for sale (OFS) component of 67.49 Lakh equity shares.

The net proceeds from the fresh issue will be used for capital expenditure related to fit-outs in the new centres, security deposits for the new centres, and other general corporate purposes. Additionally, the proceeds will be allocated towards the repayment, prepayment, or redemption of certain borrowings.

The startup also intends to raise INR 110 Cr through a pre-IPO placement prior to filing its red herring prospectus (RHP).

Smartworks currently operates over 8 Mn sq. ft. of office space across 40+ locations spanning 14 cities, including Bengaluru, Kolkata, Delhi NCR and Mumbai. It claims to cater to more than 600 enterprises, including Honeywell, Starbucks Coffee, DHL, and Moglix.

The startup competes against the likes of Awfis, WeWork India and IndiaQube.

Amid the IPO boom in the Indian equities market, a number of startups have gone public recently and many others are in the process of going public. Smartworks’ rival Awfis made its public market debut in May this year. Its shares listed at INR 432.25 apiece on the BSE, a premium of 12.8% to the issue price.

The post Smartworks DRHP: FY24 Loss Declines 51% To INR 50 Cr, Revenue Crosses INR 1,000 Cr Mark appeared first on Inc42 Media.

IPO-bound B2B ecommerce platform ArisInfra Solutions’ consolidated net losses rose 12% to INR 17.33 Cr in the financial year 2023-24 (FY24) from INR 15.48 Cr loss it incurred in the previous financial year. 

The startup, which recently filed its draft red herring prospectus (DRHP) to raise INR 600 Cr via IPO, saw its operating revenue decline 6.5% during the year under review. ArisInfra’s revenue from operations stood at INR 696.84 Cr in FY24 as against INR 746.07 Cr in the previous fiscal. 

Founded in 2021 by Ronak Morbia and Bhavik Khara, ArisInfra uses AI and machine learning to simplify construction material procurement. The platform links property developers with vendors, digitising the construction industry’s supply chain.

ArisInfra has contracts with customers to provide project management services and its related services and earns commission income from them.

Including other income, the startup’s total revenue declined 6.9% to INR 702.35 Cr during the year under review from INR 754.43 Cr in FY23.

The startup’s loss increased during the year under review primarily due to fair value loss on derivatives of INR 20.55 Cr. Excluding this, it would have posted a net profit of INR 3.22 Cr in FY24. 

It must also be highlighted that ArisInfra’s ESOP expenses stood at INR 5.14 Cr in FY24. 

Meanwhile, the startup achieved EBITDA profitability during the year under review. Its EBITDA stood at INR 13.01 Cr as against an EBITDA loss of INR 10.9 Lakh in the previous year. EBITDA margin stood at 5.56% in FY24.

It said that its revenue for the year decreased primarily due to a “strategic shift in our product mix, with emphasis on the sale of products which offer higher margins and increased focus on the sale of our third-party manufactured construction materials”.

Zooming Into ArisInfra’s Expenses

In line with the fall in revenue, the startup managed to trim its expenses. Its total expenditures decreased 7% to INR 719.19 Cr in FY24 from INR 772.67 Cr in the previous fiscal year. 

Purchase Of Stock-In-Trade: The expense under this head declined 9.6% to INR 612.44 Cr from INR 671.42 Cr in FY23. 

Cost Of Materials Consumed: The startup saw a sharp 98% reduction under this head to INR 20.2 Lakh in FY24 from INR 13.31 Cr in the previous fiscal year. 

Employee Benefits: Employee costs zoomed 51% to INR 30.3 Cr from INR 20.03 Cr in FY23.

This indicates that the startup likely increased its headcount during the year under review. As per its DRHP, ArisInfra had 187 permanent employees as of July 31, 2024.

Finance Cost: The startup’s finance costs grew 35% to INR 30.3 Cr in FY24 from INR 20.03 Cr in the previous year. 

A Quick Look At ArisInfra’s IPO Bid

ArisInfra’s INR 600 Cr IPO will comprise only a fresh issue of shares.

Beside founders Morbia and Khara, the startup counts Pharmeasy CEO Siddharth Shah and kin Jasmine Bhaskar Shah, Priyanka Bhaskar Shah, Bhaskar Shah, Aspire Family Trust and Priyanka Shah Family Trust among its promoters.

ArisInfra converted into a public entity on May 31, 2024, by dropping the “Private” from its legal name Arisinfra Solutions Private Limited. 

The startup delivers the products from the manufacturers of raw materials to the customers and doesn’t store the raw materials. 

“We leverage our extensive network of vendors to source construction materials and provide them to real estate and infrastructure developers and contractors, striving to be a one-stop solution for all their construction material requirements,” it said in the DRHP. 

When a customer submits a request for a quotation on the startup’s platform, it generates a list of suitable vendors from its vendor network based on factors including their location, proximity to customers, credit terms and previous order fulfilment performance. 

The platform analyses and aggregates all the vendor bids on the basis of their price and credit terms before sharing a one price quotation with the customer for the construction materials requested.

It operates in 900 pincodes and 18 Indian states. It said that its customer base stood at 2,133 and vendor count stood at 1,458 as of March 31, 2024. Its clients include The Wadhwa Group, ACC, Piramal Realty, Tata Projects, JSW Cements, among others. 

It claims that it has delivered 10.35 Mn metric tonnes of construction materials, including aggregates, ready-mix concrete, steel, cement, construction chemicals and walling solutions, since inception. 

In the construction delivery marketplace space, it competes with behemoths like Infra.Market, OfBusiness, Moglix, Zetwerk, among others. According to the DRHP, ArisInfra’s revenue is less than all of the aforementioned startups.

The filing of the DRHP comes at a time when a number of Indian startups are looking to list on the exchanges amid the ongoing IPO boom. ArisInfra’s rival OfBusiness is also said to have started discussions with investment bankers for its IPO next year. Meanwhile, Infra.Market is also eyeing a $300 Mn to $400 Mn public offering.

Update | August 21, 09:15 PM: The story has been edited to add fair value loss and EBITDA numbers for FY24.

The post ArisInfra FY24: IPO-Bound Startup’s Loss Widens 12% To INR 17 Cr, Revenue Down 6.5% appeared first on Inc42 Media.

IPO-bound logistics startup Ecom Express managed to reduce its net loss by 67% year-on-year (YoY) during the financial year ended March 31, 2024. Its consolidated loss declined 67% to INR 255.8 Cr in the financial year 2023-24 (FY24) from INR 428.1 Cr in FY23. 

Of this, Ecom Express’ loss from continuing operations stood at INR 248.5 Cr in FY24 as against INR 359.8 Cr in the previous year. Meanwhile, loss from discontinued operations was at INR 7.4 Cr during the year under review as against INR 68.3 Cr in FY23.

The loss from discontinued operations refers to loss from Paperfly Private Limited, a partly owned subsidiary in Bangladesh. Ecom Express said it decided to exit from its investment in Paperfly in FY23.

“… the holding company on 7 July 2024 has entered into a SHA termination agreement, thereby selling the entire shareholding in Paperfly Private Limited as per Form 117 – Instrument of transfer of shares for a total consideration of INR 11.44 Mn (received on 16 July 2024),” it said.

Revenue Stays Almost Flat

Meanwhile, the startup’s operating revenue saw a marginal 2.15% increase to INR 2,609 Cr in FY24 from INR 2,553.9 Cr in the previous fiscal year, as per its draft red herring prospectus (DRHP).

Founded in 2012 by the late TA Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena, Ecom Express is a pure play B2C ecommerce logistics solutions provider. It generates revenue by servicing customers in the ecommerce industry, including horizontal, vertical, D2C, and quick commerce platforms in India. 

Including other income, total revenue grew 3% to INR 2,652.8 Cr in FY24 from INR 2,575.5 Cr in the previous fiscal year.

In the DRHP, Ecom Express said that it will continue to make investments in its business and this may lead to it continuing to make losses in the future.

“Our losses and negative cash flows may continue in future periods, given the investments expected to be made to grow our business and logistics infrastructure, enhance our supply chain capabilities, develop and launch new solutions and service offerings, expand our customer base in existing markets, penetrate new markets and continue to innovate on our technological platform,” it said.

The startup stated that it has already spent, and expects to continue spending, significant financial and other resources on technological investments, including data science, infrastructure, and team expansion, among other initiatives. 

“When we become a listed company, we will incur significant additional legal, accounting and compliance costs. These efforts may be more costly than we expect and may not result in corresponding increased revenue or growth in our business,” it added.

As of March 31, 2024, Ecom Express’ network included 115 pick-up and processing centres, 81 sorting hubs, 32 fulfilment centres, 3,421 delivery centres, and 89 return centres.

Where Did Ecom Express Spend The Most?

In line with the revenue, total expenses increased by a marginal 0.65% to INR 2,921.5 Cr in FY24 from INR 2,902.8 Cr in FY23.

Cost Of Services: Its biggest expense was the cost of services. The startup spent INR 1,389.9 Cr on this in FY24, an increase of 0.23% from INR 1,386.7 Cr in the previous year.

Losses From Damaged/ Lost Shipments: The expenses under this head shot up 9.21% to INR 92.4 Cr in FY24 from INR 84.6 Cr in FY23.

Employee Expenses: Employee benefit costs fell 9.1% to INR 603.3 Cr during the year under review from INR 664 Cr in FY23.

Earnings before interest, tax, depreciation and amortisation (EBITDA) zoomed multifold to INR 103.5 Cr in FY24 from INR 3.2 Cr in the previous fiscal year.

Ecom Express is looking to raise INR 2,600 Cr through its public issue, which will include a fresh issuance of shares worth up to INR 1,284.5 Cr and an offer for sale component of up to INR 1,315.5 Cr.

The startup also intends to raise INR 256.9 Cr through a pre-IPO placement before filing its red herring prospectus (RHP). 

This is the logistics startup’s second attempt at a public listing. In 2022, the company planned an INR 4,860 Cr IPO but postponed it later due to bearish market conditions.

Ecom Express competes with the likes of Delhivery, Bluedart, Xpressbees and Shadowfax. While Delhivery is listed on the bourses, Shadowfax is said to be planning an IPO of INR 2,500 – 3,000 Cr.

The post Ecom Express FY24: IPO-Bound Startup’s Loss Narrows 67% To INR 255.8 Cr appeared first on Inc42 Media.

Nasdaq-listed self-driving car marketplace Zoomcar managed to significantly cut its loss in the first quarter of the fiscal year 2024-25 (Q1 FY25) due to a sharp reduction in its finance costs. The startup’s net loss declined 92% to $2.53 Mn during the quarter under review from $28.78 Mn in the year-ago period.

However, it also saw a decline in operating revenue. Revenue from services fell 15% to $2.20 Mn from $2.61 Mn in Q1 FY24. 

Despite the decrease in revenue, the startup said in a statement that it saw higher traction for its services during the quarter. Zoomcar’s number of bookings went up 9% year-on-year to 1.12 Lakh in Q1 FY25. It said that booking grew despite lower expenditure on performance marketing and host incentivisation.

Total costs and expenses declined 44.5% to $5.61 Mn from $10.11 Mn in the year-ago quarter on the back of reduction in sales and marketing and cost of revenue. Cost of revenue fell 58% to $1.51 Mn from $3.61 Mn in the year-ago quarter, while sales and marketing expenses fell 70% to $802.5K in Q1 FY25 from $2.70 Mn in the corresponding quarter last year.

Besides, the startup also saw a sharp fall in its finance costs in the quarter. Finance costs plunged over 97% to $551K from $21.52 Mn in the year-ago quarter. 

Zoomcar said expenses declined as a result of “broad-based cost optimisation initiatives driven by technology and product”. It said it tightened the guest verification process in the quarter and led to a reduction in late returns and accidents.

The startup said that its adjusted EBITDA loss also shrunk to $3.3 Mn during the quarter from $6.8 Mn in Q1 FY24. 

“Our first fiscal quarter results reflect a robust performance in our ongoing efficiency efforts. We achieved record non-GAAP gross profit and contribution profit, while also laying the groundwork for substantial revenue growth in the coming quarters,” Zoomcar’s recently appointed CEO Hiroshi Nishijima said in the statement. 

Earlier this month, Zoomcar rolled out a unified app to facilitate better car sharing experience for both guests and hosts. 

The improvement in its financials come at a time when its top deck has seen a number of changes in recent months. Zoomcar cofounder Greg Moran was terminated from his CEO position on June 27. Its ex-COO Nishijima then took up Moran’s role.

Besides, Zoomcar’s global president Adarsh Menon also quit in July. 

Founded by Moran and David Back in 2013, Zoomcar is a marketplace for renting self-driving cars. The startup connects hosts with guests, who choose from a selection of cars for use at affordable prices. 

It listed on Nasdaq in December 2023, following a SPAC merger with Cayman Islands-registered Innovative International Acquisition Corp. 

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