BillDesk Records a sharp growth of 9.6% while profit shows 5.1% down turn in FY23

BillDesk Records  a sharp growth of 9.6% while profit shows 5.1% down turn in FY23

A B2B Fintech platform BillDesk was not able to show momentum in their business operations from the last couple of years it could not show a double digit growth in FY23. The company’s profit was also showing downward direction, which reduced by 5.1% in FY23. The company’s net profit was recorded  142 crore for the financial year 2022-23.

Recently, the company has bounced back and according to the consolidated financial statements that is recorded with the Registrar of Companies revealed that, BillDesk’s revenue from operations grew 9.6% to 2,678 crore from 2,443 crore during FY23.

BillDesk charges fees for the processing and settlement services of electronic transactions — and collections from these services accounted for more than 70% of the total operating revenue in FY23. The rest of the amount comes from loyalty programs for clients and the sale of products. Nearly, 87.15 crore was received via interest and gain on financial assets, which took the total revenue of the firm to 2,765 crore in FY23.

As per the report of startup intelligence platform TheKredible,the fintech startup has  spent the most on technical services (bank fees and service charges) which formed 83.8% of the total expenditure. This cost went up 9.3% to 2,146 crore during FY23 from 1,963.6 crore in FY22.

The major part of the expenses come from technical services came from technical services, which includes bank fees and service charges, followed by employee cost that went up by 35.4 percent to 245 crore. The expenses from employee benefits were increased 35.4% to 245 crore during the last fiscal year from 181 crore in FY22.

The fintech firm was losing momentum when they cancelled the deal its mega deal with Prosus-backed PayU Payments. The investment arm of South African multinational Naspers, Prosus had terminated its $4.7 billion acquisition of BillDesk in October 2022. BillDesk’s operating cash flows turned negative to 121.63 crore in FY23. In FY22, it recorded a positive cash flow of 39.83 crore. The company’s EBITDA margin and ROCE also worsened to 9.23% and 7.75% during the same period.