CoinDCX Slips Into Loss In FY22 As Advertising Expenses Surge Multifold To INR 323.5 Cr

CoinDCX Slips Into Loss In FY22 As Advertising Expenses Surge Multifold To INR 323.5 Cr

SUMMARY

CoinDCX reported a net loss of INR 41.34 Cr in FY22 as against a net profit of INR 4.36 Cr in FY21

CoinDCX’s operating revenue surged more than 12.5X YoY to INR 588.5 Cr in FY22

The crypto unicorn’s advertising expenses grew to INR 323.5 Cr from INR 1.8 Cr in FY21

Crypto exchange CoinDCX’s India entity, Neblio Technologies, slipped into the red in the financial year 2021-22 (FY22) due to a sharp surge in its advertising expenses. The crypto unicorn reported a net loss of INR 41.34 Cr in FY22 as against a net profit of INR 4.36 Cr in FY21.

CoinDCX’s operating revenue, which it earns from sale of its services, surged more than 12.5X to INR 588.5 Cr in FY22 from INR 47.1 Cr in FY21. Total income stood at INR 588.94 Cr in FY22 as compared to INR 47.15 Cr in FY21.

Meanwhile, total expenses surged 15.5X to INR 630 Cr during the year from INR 40.7 Cr in FY21 on the back of the surge in advertising expenses. The crypto platform’s advertising expenses grew to INR 323.5 Cr in FY22 from INR 1.8 Cr in FY21.

Employee benefit expense rose 4.4X to INR 51.83 Cr from INR 11.69 Cr in FY21.

CoinDCX, founded by Sumit Gupta and Neeraj Khandelwal in 2018, competes with the likes of WazirX, CoinSwitch Kuber, Unocoin, among others. It operates crypto investment app CoinDCX Go, professional crypto trading platform CoinDCX Pro, and investor education platform DCX Learn. It has raised a total funding of $247 Mn till date and entered the unicorn club in 2021.

CoinDCX FY22

Amid a strong growth in the popularity of cryptocurrencies in 2021, many Indian crypto exchanges went big on marketing and advertising to grow their user base. CoinDCX too joined the party and appointed actor Ayushmann Khurrana as its brand ambassador in October 2021.

Initially, the exchange onboarded actor Amitabh Bachchan as its face. However, the veteran actor later said he was pausing the endorsement deal with CoinDCX until there was clarity on the legality of cryptocurrencies in India.

CoinDCX also launched many other marketing campaigns in that year. However, the ongoing crypto winter and the staunch opposition of the Reserve Bank of India (RBI) to private cryptocurrencies hit the growth momentum of crypto exchanges in the country.

Besides, many popular crypto exchanges, including CoinDCX and CoinSwitch Kuber, also came under the scanner of the Enforcement Directorate (ED), adding to the pressure.

Consequently, CoinDCX recently began cutting its workforce as part of a restructuring drive. The layoffs affected the sales and marketing teams.

Troubled crypto exchange WazirX also laid off as much as 40% of its workforce, or around 50-70 employees, in October 2022.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

CoinDCX Slips Into Loss In FY22 As Advertising Expenses Surge Multifold To INR 323.5 Cr-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

CoinDCX Slips Into Loss In FY22 As Advertising Expenses Surge Multifold To INR 323.5 Cr-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

CoinDCX Slips Into Loss In FY22 As Advertising Expenses Surge Multifold To INR 323.5 Cr-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

CoinDCX Slips Into Loss In FY22 As Advertising Expenses Surge Multifold To INR 323.5 Cr-Inc42 Media
CoinDCX Slips Into Loss In FY22 As Advertising Expenses Surge Multifold To INR 323.5 Cr-Inc42 Media
You’re in Good company