MyGate Cofounder Claims ‘No Burn November’

Community and security management platform myGate hit zero cash burn in November, said cofounder Abhishek Kumar in a LinkedIn post on Friday (December 15).

“We finally hit Zero cash burn last month. Now the journey towards generating free cash flow starts…,” Kumar said.

Founded in 2016 by Vijay Arisetty, Vivaik Bharadwaj, Shreyans Daga, and Kumar, MyGate offers security solutions for apartment complexes at entry and exit gates, replacing security-related systems such as RFID cards and biometrics.

In FY23, the startup reported a net loss of INR 227.1 Cr, which widened more than 30% year-on-year (YoY). However, excluding ESOP costs and loss of financial liabilities, MyGate’s loss narrowed 35% to INR 76.43 Cr in FY23.

Its operating revenue during the year under review stood at INR 71.1 Cr against INR 40.1 Cr in FY22. As on March 31 2023, MyGate registered aggregate cash and bank balances of INR 100.4 Cr.

“The management has reviewed the cash flow forecast for the future period and taken various measures to contain costs and increase the revenue,” the startup said in its FY23 financial filing. 

With profitability now becoming a key focus for investors, most tech startups globally have started focussing on turning profitable. 

In November last year, MyGate bagged $12.2 Mn (INR 100 Cr) in a funding round led by Urban Company and Acko. This was three years after raising $56 Mn in a Series B funding from Tiger Global, JS Capital, and China’s Tencent Holdings.

Earlier this year, MyGate laid off 30% of its workforce after letting go of a similar percentage of employees in December 2022.

The startup competes with NoBroker’s apartment management platform NoBrokerHood, JioGate, and GateKeeper.