Whatfix’s revenue grew 73% in FY22, losses zoom to Rs 250 Cr


FY22 has turned out to be eventful for B2B digital adoption solutions provider Whatfix which raised $90 million in investments led by SoftBank with a 4X jump in its valuation in June last year. During the fiscal, the firm managed to grow its income by 73% but this growth has come with more than 33% surge in losses.

Global markets lead revenue growth 

The operating revenue grew 73% to Rs 172.42 crore in FY22 from Rs 99.64 crore in FY21, as per the annual financial statements filed with the Registrar of Companies (RoC). 


Importantly, Whatfix’s entire revenue came from global markets: America, Europe, Asia Pacific, and the Middle East region. About 70% of the collection emerged from the US followed by Europe. Country-wise revenue breakup can be seen below:

Whatfix provides product adoption, user onboarding, effective training, app guidance, self-service, and performance support to companies. Income from these subscriptions was the only source of revenue for the firm in FY22.

The company also made Rs 20.52 crore as other income mostly from interest on fixed deposits and gain of sale of current investment in FY22.

The cost side story

When it comes to costs, somewhat surprisingly, it is finance costs that became the largest cost center for the software firm which accounted for 51% of the overall costs. This cost blew 6.7X to Rs 457.37 crore in FY22. The sharp increase in the finance cost was the Fair value loss on the liability portion of CCPS. 


Employee benefit expenses were the second largest cost for Whatfix amounting to 32.8% of the total expenditure which increased 80.3% to Rs 294.5 crore in FY22. The cost for advertisement promotion and software maintenance jumped by 200% and 100%respectively to Rs 75.47 crore and Rs 26.25 crore. 


Whatfix added another Rs 17.33 crore as legal and professional charges in FY22, pushing the overall costs by 47% to Rs 440 crore in FY22. Due to the surge in expenses, the firm’s losses shot up over 33% to nearly Rs 250 crore in FY22. Entrackr has excluded the expense due to fair value loss on the liability portion of CCPS while calculating the overall losses and ratios. On a unit level, Whatfix spent Rs 2.5 to earn a single rupee of operating revenue.

Update: We have updated the headline and story to change the loss number due to fair value loss on the liability portion of CCPS. 

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