Inshorts’ FY24 Loss Declines 26% To INR 228 Cr

SUMMARY

Inshorts reduced its net loss for FY24 by 26.44% to INR 227.8 Cr from INR 309.7 Cr in FY23

The reduction in net loss came at the cost of revenue growth.

The company’s operating revenue was almost stagnant at INR 181.4 Cr during the year under review as against INR 180.9 Cr in FY23

News aggregator platform Inshorts reduced its net loss for the financial year ending March 2024 (FY24) by 26.44% to INR 227.8 Cr from INR 309.7 Cr in FY23.

However, the reduction in net loss came at the cost of revenue growth. The company’s operating revenue was almost stagnant at INR 181.4 Cr during the year under review as against INR 180.9 Cr in FY23, clocking a mere 0.28% growth.

The company’s EBITDA loss decreased 45% to INR 143.3 Cr from an EBITDA loss of INR 261 Cr in FY23. This led to EBITDA margin improving to -79% in FY24 from -144% in the previous fiscal year.

Founded in 2013 by Azhar Iqubal, Anunay Arunav, and Deepit Purkayastha, Inshorts primarily summarises news across politics, sports, tech, and other areas within 60 words. Notably, the company also launched another app called Public in 2020. It is a location based social network which allows users to record and share happenings around them in video format.

However, now the company is pivoting from its original news aggregator model to a full-fledged social media content platform by roping in influencers and creators.

Last year, cofounder Iqubal also stepped away from the role of CEO to become a chairman. Purkayastha took over as the CEO of the 11-year old company.

In 2021, Inshorts raised a little over $100 Mn in two rounds. Its last funding round took place in July 2021, when it raised $60 Mn led by Vy Capital. Overall, it has raised a total funding of over $165 Mn+ till date and counts the likes of SIG Venture Capital, A91 Partners, and SIG Global India Fund among its investors.

Zooming Into Expenses

The company’s total expenditure for the year under review declined 16.44% to INR 411.2 Cr from INR 492.10 Cr in FY23.

Employee Benefit Expenses: It spent INR 90.1 Cr on employee costs in FY24, an increase of 14.34% from INR 78.8 Cr in FY23.

However, as per LinkedIn, Inshorts had around 986 employees at the start of FY23, which decreased to 898 by the end of FY24.

Advertising & Promotional Expenses: The platform managed to reduce its advertising costs by 65.09% to INR 47.2 Cr from INR 135.2 Cr in FY23.

Miscellaneous Expenses: The startup didn’t give a breakdown of its miscellaneous expenses. However, it managed to reduce them by 26.44% to INR 227.8 Cr from INR 309.7 Cr reported in FY23.