Servify scale shoots up 2.4X in FY22, losses mount to Rs 205 Cr


Post sales service firm Servify has emerged as a leader in the personal device management space. The Mumbai-based company claims to have covered 500 million devices and served 17 million customers across 50 original equipment manufacturers (OEMs). It also managed to close a $65 million round in August at a valuation of around $800 million.

Servify’s Series D fundraise came on the back of a sharp spike in its scale during the last fiscal year (FY22). Its operating income grew 2.4X to Rs 486 crore in FY22 from Rs 198 crore in FY21, as per the company’s annual financial statements with the Registrar of Companies (RoC).


The company offers brand-authorized after-sales support for mobile phones, personal gadgets, electronics and home appliances. Collection from these services contributed over 90% of the total revenue and ballooned 2.5X to Rs 441 crore during FY22. It also made Rs 45.4 crore from the sale of mobile handsets and spare parts which surged 94% during the same period.


When it comes to expenses, purchase of protection plans stood out as the largest cost center, forming nearly 26% of the total expenditure. This cost shot up 2.6X to Rs 181.5 crore in FY22 from Rs 70 crore in FY21.

Insurance premium and repair cost were the second largest cost element for Servify. These costs rose 2.5X to Rs 153.7 crore during FY22. The company also incurred employee benefit and commission expenses of Rs 126.7 crore and Rs 79.6 crore which surged 1.7X and 2.8X respectively in FY22.


On the lines of its scale, Servify’s annual expenditure also soared 2.2X to Rs 694 crore in FY22. On a unit level, the company spent Rs 1.43 to earn a rupee of operating revenue in the last fiscal year.

Due to sharp rise in expenses, the company’s losses also spiked around 80% to Rs 205 crore in FY22 from Rs 114 crore in FY21. Its operating cash outflows improved by 17% to Rs 88 crore in FY22. During the year, the EBITDA margin of Servify also improved to -35.77% from -48.99% in FY21.

Servify competes primarily with Onesitego which is yet to report FY22 numbers. Meanwhile, Onsitego’s revenue from operations stood at Rs 131 crore in FY21 as compared to Rs 108 crore in FY20. Its losses also surged 2.8X to Rs 14.62 crore in FY21 from Rs 5.1 crore in FY20. Its direct competition includes Sequoia Capital and Lightspeed funded OneAssist, Syska Gadget Secure and ZurePro.

While the propensity to outsource servicing offers a clear growth pathway for these firms, there is always the risk of strong pushback from consumers if servicing standards are perceived to be falling due to this.  Or should a manufacturer tout company after-sales service as a USP over competition.  It’s interesting that none of these firms has ventured, directly or indirectly, into developing a ‘second life’ market for the products they repair. 

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