BillDesk’s FY23 Profit Dips 5%, Revenue Inches Closer To INR 3,000 Cr Mark

SUMMARY

BilDesk reported a net profit of INR 141.9 Cr in FY23, a 5% decline from INR 146.9 Cr in the previous fiscal year.

Operating revenue increased 10% to INR 2,678.3 Cr from INR 2,442.8 Cr in FY22

The fintech major’s total expenditure rose 12% to INR 2,561.5 Cr in FY23 from INR 2,295 Cr in FY22

Mumbai-based B2B fintech major BillDesk continues to see its net profit decline. The unicorn’s net profit declined 5% to INR 141.9 Cr in the financial year 2022-23 (FY23) from INR 146.9 Cr in the previous fiscal year.

In FY22, the startup saw its net profit fall 39% from INR 245.5 Cr in the previous fiscal year.

BillDesk was founded in 2000 by three former Arthur Andersen executives — M N Srinivasu, Ajay Kaushal and Karthik Ganapathy. It primarily earns revenue from transaction processing fees, e-top up of services, and loyalty points redemption fees.

In FY23, BillDesk’s operating revenue grew 10% to INR 2,678.3 Cr from INR 2,442.8 Cr in the previous fiscal year.

Including other income, total revenue rose 10% to INR 2,765.4 Cr from INR 2,513.8 Cr in FY22.

Where Did BillDesk Spend?

BilllDesk’s total expenditure zoomed 12% to INR 2,561.5 Cr in FY23 from INR 2,295 Cr in FY22.

Technical Costs: These are the operating expenses, which include bank fees and service charges, data and communications, and verification expenses. Technical expenses rose 9% to INR 2,146.3 Cr in FY23 and accounted for 84% of the total expenses. The company spent INR 1,963.6 Cr under this head in FY22.

Employee Expenses: The startup spent INR 245 Cr on employee benefit expenses during the year under review, 35% higher than INR 181 Cr in the previous fiscal year. This is also an indication of an increase in its employee headcount.

BillDesk offers payment gateway and other digital payment solutions to enterprises. It competes against the likes of Razorpay and Citrus Pay.

Razorpay’s revenue increased 54% year-on-year (YoY) to INR 2,279.3 Cr in FY23, while its loss dipped 1% to INR 7.3 Cr.

In 2021, Prosus, a global consumer internet group that operates fintech company PayU, announced that PayU would be acquiring BillDesk for $4.7 Bn. However, Prosus announced the termination of the acquisition agreement last year due to non-fulfilment of certain conditions, despite the deal receiving regulatory approvals.