RapiPay, which offers a wide suite of banking and other services, saw its operating revenue rise 18.3% to INR 439.2 Cr in FY23 from INR 371.4 Cr in FY22
Total expenses zoomed 1.3X to INR 538 Cr in FY23 from INR 406.9 Cr in the previous fiscal year
The startup last raised $15 Mn in a funding round in February 2022 from Varun Jaipuria of RJ Corp, Rahul Gautam of Sheela Foam, DLF Family Office, and Rohan Kumar of DS Group
Fintech startup RapiPay’s net loss more than doubled to INR 93.3 Cr in the financial year 2022-23 (FY23) from INR 40 Cr reported in the previous fiscal year, hurt by a sharp rise in employee benefit expenses.
As per the startup’s standalone financial statement, its operating revenue increased only 18.3% to INR 439.2 Cr in the year under review from INR 371.4 Cr in FY22.
The startup provides various digital banking services and earns a majority of its revenue from the sale of services, which stood at INR 432.8 Cr in FY23 as against INR 365.8 Cr in the prior year.
Its revenue from sale of products increased 14% year-on-year (YoY) to INR 3.6 Cr in FY23.
Including interest income and miscellaneous other non-operating income, RapiPay’s total revenue grew to INR 444.7 Cr in FY23 from INR 374.1 Cr in the previous year.
Founded in 2019 by Yogendra Kashyap, RapiPay offers a wide suite of banking and other services to consumers with its financial super App NYE. It also offers assisted payment services, POS solutions, and MSME loans.
In February last year, RapiPay raised $15 Mn in a funding round, led by Varun Jaipuria of RJ Corp, Rahul Gautam of Sheela Foam, DLF Family Office, and Rohan Kumar of DS Group, to launch NYE.
During the same time in 2022, the startup said that it was doing 1 Mn daily transactions and witnessing a 25% month-on-month growth in basic banking services, including cash withdrawal and deposit, micro ATMs, utility payments, POS, loans, and insurance.
Meanwhile, RapiPay witnessed a 1.3X jump in its total expenses to INR 538 Cr in FY23 from INR 406.9 Cr in the previous fiscal.
Service and commission charges were the single biggest contributor to the total expenses during the reported period, which grew to INR 360.8 Cr in FY23 from INR 322.2 Cr in the previous year.
On the other hand, RapiPay’s employee benefit expenses shot up 2.7X to INR 114.2 Cr in the year under review from INR 42.4 Cr in FY22.
While the startup paid INR 62.4 Cr as salaries and wages in FY23, its total employee share-based payment stood at INR 48.1 Cr in the year. In FY22, it spent INR 8 Cr towards ESOPs.
RapiPay’s spending towards depreciation, depletion, and amortisation also grew to INR 12.8 Cr in FY23 from INR 6.4 Cr in the prior year.
With the growing number of smartphone users and increasing internet penetration, the digital payments ecosystem has leapfrogged over the last few years, leading to the emergence of a large number of fintech startups.
Till Q2 2023, there were a total of over 4.2K active fintech startups in the country across sectors including lendingtech, payments, and neobanking.
As per Inc42’s analysis, the country’s fintech market is expected to touch $2.1 Tn in size by 2030, growing at a CAGR of 18% between 2022 and 2030.