Servify Trims Loss By Almost 60% To INR 93.81 Cr In FY24

Device management startup Servify’s consolidated net loss declined by 59.05% to INR 93.81 Cr in the financial year 2023-24 (FY24) from INR 229.11 Cr in the previous fiscal year, helped by a boost in its topline and drop in employee benefit expenses.

The startup’s operating revenue increased by 23.44% to INR 754.51 Cr during the year under review against INR 611.23 Cr in FY23. 

Founded in 2015 by Sreevathsa Prabhakar, Servify’s offerings include device management services including device protection, product buybacks and device exchange. The startup earns a majority of its revenue from sale of services such as device protection plans and platform licences.

In the first three years, Servify only operated in India and gradually expanded into international markets. Besides India, it operates across three continents with regional offices in the US, Canada, China, the Middle East and Europe.

In the device management space, it competes with the likes of Qarmatek in India and Hyperlight in the US. 

The company has raised more than $130.10 Mn in funding till date and counts BEENEXT, Blume Ventures and DMI Sparkle Fund, among others as its backers. 

Servify works with brands like Apple, Samsung, Bose, HP, Panasonic, Airtel, Vodafone and Amazon among others. It claims to be operational in more than 40 countries and has around 18,000 service locations. 

The company in 2022 secured $65 Mn in its Series D funding round led by Singularity Growth Opportunity Fund.

Breakdown of Servify’s Revenue

As a device service platform, Servify earns a majority of its revenue from the sale of services and for some part from its products. However, in the financial year 2024, its product sales increased substantially.

In the fiscal year 2024, Servify’s income from sale of services increased to INR 662.99 Cr from INR 556.3 Cr a year ago. Its revenue from sale of products expanded to INR 91.17, a 66% year-on-year (YoY) increase from INR 54.9 Cr in FY23.

Besides, the company’s other income almost doubled to INR 4.46 Cr in the year under review against INR 2.17 Cr in FY23. 

Where Did Servify Spend in FY24?

The startup’s total expenditure saw a slight increase in FY24 to INR 859.23 Cr against INR 846.7 Cr in the previous year. 

Employee Benefit Expense: The expense under this bucket reduced by 13.57% in FY24 to INR 157.92 Cr as against INR 182.72 Cr. 

Purchase of Stock-In-Trade: The expense incurred on the purchase of stock rose by 57.86% to INR  84.50 Cr in the year under review from INR 53.53 Cr in FY23. The stock in trade includes purchase of mobile phones worth INR 82.45 Cr and spare parts worth INR 2.05 Cr in FY24. 

Cost of Materials Consumed: The startup’s direct operating cost in the form of cost of materials consumed reduced to INR 493.41 Cr in FY24 from INR 494.96 Cr in the previous fiscal.

Finance Cost: Servify’s finance cost contributed primarily to the marginal increase in its expenditure. The company’s finance cost stood at INR 9.66 Cr, witnessing a 218% rise in the reported year against INR 3.03 Cr in the last fiscal.