BrowserStack’s Profit Jumps 57% YoY To INR 75.3 Cr In FY22; Operating Revenue Up 59%

SaaS unicorn BrowserStack reported a 57% jump in its standalone net profit to INR 75.3 Cr in the financial year 2021-22 (FY22) from INR 47.9 Cr in FY21 on the back of a steady growth in its business. 

Founded in 2011 by Ritesh Arora and Nakul Aggarwal, the startup claims to be profitable since its inception. In FY22, BrowserStack entered the unicorn club after raising $200 Mn funding in its Series B round at a valuation of $4 Bn. It was the ninth Indian SaaS startup to join the $1 Bn+ valuation club.

BrowserStack’s operating revenue surged 59% to INR 418.4 Cr in FY22 from INR 263.3 Cr in the prior fiscal year

As an app testing platform that allows developers to build bug-free apps and comprehensively test mobiles and apps through combinations of various digital environments, BrowserStack earns a majority of its revenue from the sale of services. The startup claims that its offerings are used by 6 Mn developers across over 50,000 companies, including Google, Microsoft, NVIDIA, and Wells Fargo. 

Total revenue, including interest on fixed deposits and current investments, stood at INR 422.1 Cr in FY22 as against INR 263.7 Cr in  FY21.

On the other hand, BrowserStack’s total expenses increased 61% to INR 321.4 Cr from INR 199.5 Cr in the prior fiscal year.

The unicorn’s employee benefit expenses accounted for a massive 83.3% of its total expenses during the year. It spent INR 267.8 Cr towards employee benefits in FY22 as against INR 158.8 Cr in FY21.

It is pertinent to note that while announcing its Series B fundraise in June 2021, BrowserStack said that it was aiming to double its team size over the next 18 months. The startup was looking to exit 2021 with a total headcount of over 1,000 members.

In FY22, the startup spent INR 209.4 Cr towards salaries and wages alone, which was almost a 65% jump year-on-year (YoY).

Besides, BrowserStack also had plans to make strategic acquisitions to increase its market capabilities. Months after the fundraise, it acquired open-source test automation framework Nightwatch.js in December 2021.

BrowserStack’s expenses towards rent increased 35.5% YoY to INR 22.6 Cr in FY22. Meanwhile, IT expenses incurred from software subscriptions increased to INR 11.3 Cr during the fiscal year from INR 8.9 Cr in FY21.

BrowserStack’s total depreciation, depletion, and amortisation expenses also rose to INR 8.8 Cr in FY22 from INR 7.4 Cr in the prior fiscal year.

The startup is backed by marquee investors such as Accel, BOND, and Insight Partners.

A report estimates that the Indian SaaS sector will generate revenue in the range of $50 Bn-$70 Bn by 2030. However, as per a recent Gartner report, SaaS will see the most significant impact from inflation due to staffing challenges and the focus on margin protection. However, it also forecasts the SaaS sector to grow 16.8% in 2023.

Meanwhile, Sridhar Vembu-led SaaS giant Zoho’s profit crossed the INR 2,000 mark in FY22. Its total revenue grew 28.5% to INR 6,998.8 Cr during the year.

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