Mygate’s Operating Revenue Jumps 35% To INR 96.2 Cr In FY24; Cost Optimisation Continues

Community and security management startup myGate reported a 35.3% rise in operating revenue to INR 96.2 Cr in the financial year 2023-24 (FY24) from INR 71.1 Cr in the previous fiscal, helped by growth in its key revenue streams of advertising and software-as-a-service (SaaS) subscriptions. 

The startup earned INR 85.4 Cr as enterprise revenue, which increased 35.1% year-on-year (YoY), as per the startup’s business summary. This includes income from enterprise sources, including resident welfare associations, security agencies, and builders.

On the other hand, revenue from consumer services, which includes utility bill payments, maintenance bills, and home services, also grew almost 38% YoY to INR 10.9 Cr in FY24.

Mygate said its total revenue stood at INR 109.1 Cr in FY24, an increase of 41% from INR 77.2 Cr the previous year.

Meanwhile, the startup claimed to have reduced its cash burn by 85% during FY24, with zero cash burn recorded in the March quarter (Q4).

However, it continues to be a loss-making entity. Mygate posted an adjusted EBITDA loss of INR 20.4 Cr as against INR 71.3 Cr reported in the last fiscal.

It claimed that between FY21 and FY24, its losses decreased by 81%. 

“Overall, the company’s financial performance reflects a positive growth trajectory. With significant revenue growth, efficient expense management, reduction in losses, and effective cash flow management, the company is well-positioned for continued success in the future,” said Mygate in its FY24 business summary.

Where Did MyGate Spend?

The startup managed to decrease its total expenses by almost 13% to INR 129.5 Cr in FY24 from 148.5 Cr in the previous year.

Its employee benefit expenses continued to be the biggest expense head. Mygate’s employee cost, excluding ESOPs, stood at INR 66.4 Cr in FY24 as against INR 79.6 Cr in the previous year.

It is pertinent to note that the startup laid off 30% of its employees in February 2023, which reportedly shrunk its total headcount to around 400 from 600 earlier.

Founded in 2016 by Vijay Arisetty, Vivaik Bharadwaj, Shreyans Daga, and Abhishek Kumar, Mygate offers security solutions for apartment complexes at entry and exit gates. It replaces other security-related systems such as RFID cards, biometrics and vehicle stickers.

In the last few months, there have been a few top-level rejigs at the company. Earlier this year, Mygate cofounder and former chief operating officer Kumar took up the position of CEO in the company, with cofounder and former CEO Arisetty promoted to the role of the chairman. Earlier this week, Inc42 reported that Arisetty has taken up the role of cofounder and CEO of fintech startup Aurm. 

Mygate said that the previous two years have been “what in the startup world is thought to be boring” – optimising expenses, lowering costs, and responsibly growing revenue. It said that with the organisation maturing, it would look forward to doing more of the same.

However, the startup’s other expenses grew 7.8% YoY to INR 61.5 Cr in FY24. The company did not provide a breakdown of these expenses.

Outlook

Mygate projects its revenue to grow 75% YoY in FY25.

“We are a startup at heart, and when any opportunity arises, we will look for areas where we can innovatively make a difference. Over the past few months, we have begun to pilot a large new initiative that will expand the foundations of the company, and take the magic of Mygate beyond gated communities, too,” said Mygate.

The startup claims to be the largest community management app in the country with a presence in over 4 Mn homes.

Mygate competes with the likes of Gate Keeper, NoBrokerHood, and JioGate. The startup has raised over $79 Mn in funding till date.