Newly Minted Unicorn LeadSquared Reports 37% Decline In Losses In FY21

Bengaluru-based SaaS (software as a service) startup LeadSquared, the latest entrant to India’s coveted unicorn club, managed to reduce its loss by 36.5% in FY21. The consolidated loss after tax of the SaaS startup, which offers sales and marketing solutions to businesses, declined to INR 11.3 Cr in FY21 from INR 17.8 Cr a year ago.

As per its regulatory filings, the startup’s total revenue jumped 73.5% to INR 102.2 Cr from INR 58.9 Cr in FY20. Its overall expenses rose to INR 113.3 Cr in the financial year ending March 31, 2021 from INR 72.4 Cr in FY20. 

Revenue Breakdown

The startup’s revenue from operations rose 72.7% to INR 99.4 Cr in FY21 from INR 57.5 Cr a year ago. It generated INR 83.5 Cr from its operations in India, while the remaining INR 15.9 Cr was generated from its operations outside India.  

LeadSquared’s other income, comprising interests of bank deposits, foreign exchange gain, dividend on current investments, grew to INR 2.8 Cr from INR 1.35 Cr in FY20. 

The startup, in its report to the board of directors, attributed the increase in its sales to the COVID-19 pandemic which resulted in rise in digital adoption. 

The startup stated that its customer base grew 124.22% on a year-on-year basis. In FY21, LeadSquared added 648 new customers across India, the US, the UAE, South Africa, and Southeast Asia. 

During the same period, it also launched several features including opportunity management system, messaging platform, sales performance platform, among others to enhance its product offerings. 

Sharp Jump In Employee Expenses

LeadSquared’s total expenses shot up to INR 113.3 Cr in FY21, with expenses related to employees being the biggest contributor. Employee benefit expenses jumped 54.3% to INR 61.9 Cr in FY21 from INR 40.1 Cr in FY20.

Employee benefit expenses mostly consist of wages of employees, PF contribution, gratuity, and other employee benefits. The startup increased its employee headcount to 405 in FY21 from 280 in FY20. 

LeadSquared spent INR 47.3 Cr on other expenses, which consisted of marketing, business support charges, data center costs, among others. 

It must be noted that the startup also raised $32 Mn in its Series B round in FY21. 

LeadSquared – 103rd Unicorn

The Bengaluru-based startup became the country’s 103rd unicorn last month after raising $153 Mn in its Series C round from West Bridge Capital. The funding will help it to expand its operations in APAC and EMEA regions. The startup, which is doubling down on India and North America, is also eyeing acquisitions to increase its product portfolio. 

LeadSquared counts Dunzo, Swiggy, and Cars24 among its clients. It is backed by marquee investors like WestBridge Capital, International Finance Corporation, and Gaja Capital. 

LeadSquared has raised around $187 Mn from external investors till date. It competes with the likes of Zoho, Browserstack, Freshworks, Amagi, among others.