Leadsquared’s FY23 Loss Jumps 2.6X To INR 161 Cr As Expenses Skyrocket

Bengaluru-based SaaS unicorn Leadsquared reported a total loss of INR 161.19 Cr in the financial year 2022-23 (FY23) against an INR 61.94 Cr loss incurred in the year-ago fiscal.

The country’s 103rd unicorn saw its total revenue rise from INR 200.57 Cr in FY22 to INR 296 Cr during the period under review, Leadsquared’s filings with the Ministry of Corporate Affairs (MCA) accessed by Inc42 showed.

Founded in 2011 by Nilesh Patel, Sudhakar Gorti and Prashant Singh, Leadsquared offers SaaS products to enterprises in verticals such as edtech, healthcare, BFSI, real estate, automotive and hospitality. It counts the likes of BYJU’S, Dunzo, Zoomcar and Cars24 as its clients.

How Did Leadsquared Make Money In FY23?

In FY23, the SaaS unicorn reported a 32.30% year-on-year (YoY) jump in revenue from operations to INR 255.94 Cr.

Software Development Main Revenue Stream: As expected of a SaaS startup, developing software brought in the most revenue for Leadsquared in FY23. Leadsquared reported a software development revenue of INR 211.01 Cr in FY23, up 27% YoY from INR 165.87 Cr in the year-ago period.

Contractual Revenue Bolstered Top Line: Beyond software development, Leadsquared also raked in INR 44.97 Cr in revenue from contracts in the year ended March 31, 2023, up 63% from INR 27.59 Cr in the year-ago fiscal.

Incidentally, all of the startup’s income from contracts was from foreign lands, as it did not report any contract-based business in India. Meanwhile, all of its software development revenue came from domestic customers.

Rising Expenses Hit The SaaS Unicorn’s Bottom Line

During FY23, Leadsquared’s total expenses jumped 73.86% YoY, going from INR 262.33 Cr in FY22 to INR 456.09 Cr in FY23.

Employee Benefits Expenses Nearly Double YoY: The SaaS startup reported a total employee benefits expense of INR 270.74 Cr in the year ended March 31, 2023, up 90.40% YoY compared to INR 142.19 Cr reported during the year-ago period. 

Ad Spends Up 2X YoY: Leadsquared also ramped up its spending on advertising and other promotional activities during FY23. The SaaS startup spent INR 19.02 Cr, furthering the brand’s name in FY23, up 95% YoY compared to INR 9.76 Cr spent during FY22.

Pretty Penny Spent On Technical Services: The SaaS startup reported spending INR 79.62 Cr during FY23 as the cost incurred on technical services, up 37.28% YoY. However, Leadsquared did not define what these ‘technical services’ were.

Leadsquared raised $153 Mn from WestBridge in a Series C funding round in June 2022 at a unicorn valuation during the heyday of India’s unicorn-minting machine. The startup competes with the likes of Zoho, Browserstack, Amagi, and Freshworks in the sales automation space.