A marketplace for travel agents, TravelTriangle recently popped up in headlines for raising $3 million debt fund from InnoVen Capital.
While the company plans to expand and strengthen overseas operation with this money, let’s have a look at the financial health of the company.
In FY18, despite 59.89 per cent increase in revenue, going up from Rs 14.06 crore in the previous fiscal year to Rs 22.48 crore, the company failed to control its losses, which took a jump of 6.41 per cent, increasing to Rs 39.84 crore from being Rs 37.44 crore in FY17.
The expenses for the financial year ending March 2018 stood at Rs 62.31 crore, a 21 per cent spike as compared to Rs 51.5 crore figure at the end of the previous financial year, reveals the company’s recent RoC filing with MCA.
Employee benefit expenses accounted for more than half of the burn for the company in both the years. For FY18, the amount spent on employees stood at Rs 36.96 crore, and for FY17 the same figure was Rs 28.79 crore, registering a 28.38 per cent increase.
Looking at the growing expenses of the company, and its inability to manage losses amidst claim of breaking even, it’s hard to say how the funding rounds are going to accelerate expansion and strengthening process.
In April this year, the holiday package aggregator had raised another fund of $12 million in Series C round led by Fundamentum. Other VCs including SAIF Partners, Bessemer Venture Partners, and RB Investments also participated in the round.
What now remains to be seen is whether the company continues with losses, or successful in its expansion and strengthening growth plans.