Revenue for fintech company CASHe surpassed Rs 560 Cr in FY23, and it is still profitable

According to its consolidated financial records filed with the Registrar of Companies, CASHe’s revenue from operations increased 2.2X to Rs 560.6 crore in the fiscal year ended March 2023 from Rs 257.5 crore in the previous year.

Vijay Raman Kumar-headed CASHe works in the financial services sector, offering loans based on mobile applications. He also offers marketing services, IT enabled services, and the creation and management of outsourced service resolution systems.

The Indian millennial and Gen Z markets are the focus of CASHe, a personal loan and digital lending platform. In addition to personal loans, it offers salaried people “buy now, pay later” items via an app and a proprietary underwriting algorithm that uses redundant data.

The wealthtech platform Sqrrl was acquired by the company in May 2022, marking its entry into the wealth management sector.

93% of the total revenue collected came from IT services, with the majority of the revenue coming from financial services (interest on loans).

In FY23, the company’s non-operating income came from gains and interest on financial assets, totaling Rs 17.16 crore. With this factor included, the company’s annual revenue increased to Rs 577.75 crore.

However, 22% of the entire expense was made up of finance costs, or interest paid on borrowings. From Rs 45.2 crore in FY22 to Rs 122 crore in FY23, this expense increased by 2.7X. The cost of advertising and promotions increased by 2.6X to Rs 42.6 crore throughout the year, although the increase in employee benefit costs was just 11.7% in FY23.

Throughout the fiscal year, the company’s growing expenses had an effect on its bottom line. Even though CASHe’s scale increased by more than double, its profits decreased by almost 7% to Rs 26.3 crore in FY23 from Rs 28.3 crore in FY22.

Its cash outflows from operations, which rose 47.4% to Rs 454 crore in FY23, were also hurt by the cash burn.

The company’s EBITDA margin declined by 517 basis points to 27.65% in the most recent fiscal year. In FY23, CASHe’s unit cost was Re 0.97 for every rupee of operating revenue generated.