BillDesk’s FY22 Profit Dips 39% YoY, Revenue Crosses INR 2,500 Cr Mark



The consolidated net profit of BillDesk, a leading B2B fintech company with headquarters in Mumbai, decreased 39% to INR 149.6 Cr in FY22 from INR 245.5 Cr in FY21.

From INR 2,124.2 Cr in FY21 to INR 2,442.8 Cr in FY22, operating revenue increased by 1.1X.

Using its unified platform, the two-decade-old business processes electronic payments to generate revenue. It also sells PINS, e-top subscriptions, and loyalty rewards schemes.

Compared to FY21, BillDesk's revenue from electronic transaction processing fees, PINS sales, and e-top subscriptions increased to INR 2,114.6 Cr in FY22 from INR 1,841.6 Cr. Total revenue increased by 13.4% to INR 2,513.8 Cr from INR 2,216.1 Cr in FY21 when other income was factored in.

Yet expenses also rose as a result of the growth in business. From INR 1,879.9 Cr in FY21 to INR 2,294.9 Cr in FY22, total spending increased by 22%. The majority of expenses were spent on technical services.

Technical service costs, which include bank fees, services charges, data and communication costs, server hosting costs, verification costs, and subcontracting costs, were INR 1,991.1 Cr in the most recent fiscal year, a 21% increase over INR 1,642.7 Cr in the prior one.

In addition, BillDesk spent INR 181.2 Cr on employee benefit costs in FY22, up from INR 152.5 Cr in FY21 by a whopping 19%. Employee salary, PF contributions, and gratuities, among other costs, make up the majority of employee benefit expenses. An increase in employee benefit costs is a blatant sign that the business has hired more people.

The EBITDA Margin for BillDesk decreased from 17.5% in FY21 to 10.5% in FY22.

Three former Arthur Andersen executives, M N Srinivasu, Ajay Kaushal, and Karthik Ganapathy, created BillDesk in 2000. Solutions for payment gateways are provided. According to the corporation, it processed $90 billion worth of payments in FY21 and receives more than 100 million API requests every day. It competes with companies like Citrus Pay and Razorpay.

Due to rapid company expansion, Bengaluru-based fintech startup Razorpay's standalone net profit increased by 20% to INR 7.3 Cr in FY22 from INR 6.1 Cr in FY21. Revenue from operations for the Harshil Mathur-led startup increased by 76% to INR 1,481 Cr from INR 841.2 Cr in FY21.

PayU, a fintech startup run by Prosus, a worldwide consumer internet corporation, announced in 2021 that it would buy BillDesk for $4.7 Billion. Despite the deal getting regulatory clearances, Prosus announced the termination of the acquisition agreement last year due to non-fulfillment of a few criteria.

It was assumed that the deal's cancellation was caused by the decline in the world economy, the Paytm IPO fiasco, and the all-cash nature of the agreement.

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