Advantage Club surpasses 300 Cr revenue in FY23 with a sharp growth of 93.4%

Advantage Club surpasses Rs. 300 Cr revenue in FY23 with a sharp growth of 93.4%

Employee Engagement platform Advantage Club has maintained to keep a good place in FY23 and the firm’s operating revenue went upward by 93.4%. At the same time, the firm also managed to control its losses in the fiscal year ending March 2023 and is likely to turn profitable in FY24.

According to its financial statements filed with the Registrar of Companies shows that, Advantage Club’s revenue from operations grew to 323 crore in FY23 from 167 crore in FY22.

The company is known for providing employee engagement and experience solutions which consists of rewards, recognition, flexible benefits, wellness, onboarding, and more.  The company says that, it works with 1,000 clients in 100 countries. The company has doubled its user base to 4million in less than 15 months.

The primary source of revenue for Advantage Club, was Voucher sale which accounts for 91.5% of the total operating earning which surged 92% to 297 crore in FY23. The remaining part of the income comes from the sale of services, discount income without product margin, and brand breakage.

The procurement of vouchers naturally became the largest cost center accounting for 92% of the overall expenditure for reward and recognition firm. This cost grew 92.3% to 299 crore in FY23.

The company’s expenditure on employee benefits advertising cum promotional, information technology, legal, and other overheads will touch 324 crore in FY23 from 171 crore in FY22.

The high procurement cost (vouchers) subsided the revenue growth, making it challenging for the company to achieve profitability in the last fiscal year. As a result, the company has been flirting around breakeven for the last three fiscal years. Its ROCE and EBITDA margin recorded at -20% and -0.3% respectively.