Fintech Startup True Balance’s FY23 Net Profit Surges Over 17X To INR 59 Cr

SUMMARY

The Softbank-backed startup’s operating revenue jumped 1.8X to INR 431.1 Cr in FY23 from INR 243.9 Cr in FY22

Total expenses rose 1.5X to INR 368.2 Cr in FY23 from INR 239.2 Cr in FY22

True Balance, which provides digital loans and bill payment services, lowered its advertising expenses to INR 29.3 Cr from INR 51 Cr in the previous fiscal year

Lendingtech startup True Balance’s consolidated net profit soared over 17X to INR 58.8 Cr in the financial year 2022-23 (FY23) from INR 3.4 Cr in the previous fiscal year on strong growth in its business.

Operating revenue of Balancehero India Private Limited, the parent company of True Balance, jumped 1.8X to INR 431.1 Cr in FY23 from INR 243.9 Cr in FY22, as per its filings with the Ministry of Corporate Affairs.

As a startup that provides digital loans and bill payment services, True Balance earns revenue through commission, interest income, processing fees, finance charges, advertisements, among others.

At INR 322 Cr, the SoftBank-backed startup earned the biggest chunk of revenue from loan business. This number stood at INR 205.8 Cr in the previous fiscal year. Revenue from recharge and platform business more than tripled to INR 61.1 Cr from INR 19.7 Cr in FY22. Revenue from the lending service provider segment increased to INR 47.9 Cr from INR 18.4 Cr in FY22.

Total revenue, including other income, grew 1.8X in FY23 to INR 432.6 Cr from INR 245.5 Cr in the previous year.

Meanwhile, True Balance was able to control the rise in its expenses relative to the growth in revenue. Total expenses rose 1.5X to INR 368.2 Cr in FY23 from INR 239.2 Cr in FY22.

Bad debts which were written off accounted for 42.1% of the total expenses, rising 2.6X to INR 155.7 Cr from INR 60.3 Cr in FY22. Meanwhile, the Delhi NCR-based startup saw a 1.6X increase in employee benefit expenses at INR 39.5 Cr in FY23 from INR 24.8 Cr in the previous fiscal year.

Unlike most startups, True Balance was able to lower its advertising and promotional expenses to INR 29.3 Cr in FY23 from INR 51 Cr in FY22.

Balancehero India, which operates True Balance, is a wholly owned subsidiary of Balancehero Co. Ltd. Korea. Launched in 2014 by Charlie Lee, True Balance began its operation in India in December 2017 after receiving an RBI licence to operate its wallet service.

Currently, it offers small ticket loans and utility bill payment services and claims to have data of 75 Mn users to date. True Balance has raised a total funding of $174.4 Mn till date and is backed by the likes of SoftBank, BonAngels Venture Partners and Naver.

True Balance competes with fintech players such as MobiKwik, Paytm, PhonePe, Navi, among others.