FY24 Financial Performance of Major Indian Startups

The financial performance of companies reflects their strategic priorities, market conditions, and internal efficiencies. A comparative analysis of key metrics such as operating revenue, profit/loss, and other operational expenses provides insights into how businesses are adapting to changing economic environments. This article examines the performance of select Indian companies during FY24, offering a detailed breakdown of year-on-year changes across several parameters.

Revenue Analysis: Growth and Decline

Companies with Significant Revenue Growth

1. PhysicsWallah
   • FY24 revenue surged to ₹1,940 crore from ₹744.30 crore in FY23, marking a remarkable growth of 160.65%.
   • This growth reflects the rising demand for online education platforms and aggressive expansion strategies.
2. boAt
   • Recorded an unprecedented 823.27% increase in revenue, climbing to ₹31,177 crore in FY24 from ₹3,376.80 crore in FY23.
   • This significant rise indicates booming demand for consumer electronics and a successful penetration into new markets.
3. Zypp
   • With a revenue increase of 168.29%, Zypp achieved ₹292.7 crore in FY24 compared to ₹109.1 crore in FY23.
   • This growth showcases the growing adoption of last-mile delivery solutions in India.
4. DroneAcharya
   • Revenue rose by 89.92% to ₹35.25 crore in FY24, highlighting the increasing applications of drone technology across industries.

Companies Facing Revenue Decline

1. Wrogn
   • Experienced a revenue drop of 29.19%, with revenue declining to ₹243.80 crore in FY24 from ₹344.30 crore in FY23.
   • This reflects challenges in the retail and fashion sector amidst shifting consumer preferences.
2. Ather Energy
   • Revenue decreased by 1.52%, with FY24 revenue reported at ₹1,753.80 crore compared to ₹1,780.90 crore in FY23.
   • Marginal decline signals challenges in the competitive electric vehicle market.
3. Yudiz
   • Revenue fell by 4.4%, dropping to ₹26.10 crore in FY24 from ₹27.30 crore in FY23.
   • The decline suggests potential headwinds in the gaming and app development sectors.

Profit and Loss Analysis: Recovery and Setbacks

Companies Achieving Profit or Reducing Losses

1. Honasa
   • Transitioned to profitability with a gain of ₹110.52 crore in FY24, reversing the ₹150.96 crore loss in FY23.
   • Strategic cost management and higher brand equity in the beauty sector contributed to this turnaround.
2. OYO
   • Reported a profit of ₹229.50 crore in FY24 after incurring a loss of ₹1,286.50 crore in FY23.
   • This highlights successful restructuring and operational improvements.
3. PB Fintech
   • Achieved a profit of ₹64.41 crore in FY24 compared to a loss of ₹487.9 crore in FY23.
   • Improved underwriting standards and optimized marketing expenditures led to profitability.
4. Fasal
   • Loss narrowed by 6.25% to ₹34 crore in FY24, signaling a path toward breakeven.

Companies Facing Continued Losses

1. Swiggy
   • Although loss narrowed by 43.77%, Swiggy still posted a significant loss of ₹2,350 crore in FY24.
   • High operational costs remain a challenge despite revenue growth.
2. Ather Energy
   • Loss widened by 22.58% to ₹1,059.70 crore in FY24, reflecting high R&D and marketing costs in the electric vehicle segment.
3. PhysicsWallah
   • Loss expanded dramatically to ₹1,131 crore in FY24 from ₹84 crore in FY23.
   • Heavy investments in scaling operations and content development likely contributed to this deficit.

Employee Benefits: Investment in Workforce

1. Paytm
   • Employee benefits surged to ₹4,589.20 crore in FY24, up from ₹3,778.30 crore in FY23, reflecting a 21.44% increase.
   • Indicates a focus on retaining talent in a competitive fintech landscape.
2. Lenskart
   • Employee benefits grew by 51.43% to ₹1,086.40 crore, emphasizing expansion and workforce scaling.
3. Zomato
   • Spent ₹1,659 crore on employee benefits in FY24, a 13.25% increase from FY23, signifying efforts to bolster service quality.
4. Awfis
   • Employee benefits rose by 41.92% to ₹136 crore in FY24, indicating its commitment to employee well-being in a growing co-working industry.

Advertisement Spending: Branding Strategies

1. Bluestone
   • Advertising expenditure increased by 47.63%, reaching ₹124.2 crore in FY24.
   • Reflects aggressive marketing to boost brand visibility in the competitive jewelry market.
2. Honasa
   • Spent ₹661.2 crore on advertisements, up by 24.71%, highlighting a focus on digital and influencer-driven campaigns.
3. Swiggy
   • Reduced ad spending by 25.99% to ₹1,850.70 crore in FY24, indicating a shift toward cost optimization.
4. Kuku FM
   • Ad spending rose by 7.37%, showing a sustained effort to acquire new customers in the audio content market.

Sectoral Insights

Technology and E-commerce

1. Delhivery
   • Revenue increased by 12.67% to ₹8,141 crore in FY24.
   • Loss reduction of 75.26% to ₹249.1 crore showcases efforts to streamline operations.
2. IndiaMART
   • Revenue growth of 21.45% and a profit increase of 17.69% underline the platform’s robust position in B2B marketplaces.

Fintech

1. PhonePe
   • Revenue grew by 73.78% to ₹5,064 crore, while employee benefits rose to ₹3,603 crore.
   • Indicates a strong push toward market leadership.
2. Navi Finserv
   • Revenue declined by 6.59%, but profit more than doubled to ₹545.1 crore, reflecting financial discipline.

EdTech

1. PhysicsWallah
   • Exceptional revenue growth highlights its dominance in affordable digital learning.
   • However, increasing losses raise concerns about sustainable growth.
2. EaseMyTrip
   • Revenue growth of 31.57% and profit reduction indicate growing competition and margin pressures.

Conclusion

The financial performance of these companies highlights diverse trends. Strong revenue growth in sectors like EdTech, Fintech, and E-commerce demonstrates resilience and adaptation to market demands. Companies focused on operational efficiency and strategic investments showed profitability improvements. However, sectors facing high operational costs and competitive pressures continue to struggle with sustained losses.

As businesses navigate a challenging economic landscape, balancing growth ambitions with financial prudence remains critical for long-term success. This analysis provides valuable insights for investors, stakeholders, and policymakers to understand evolving market dynamics.