FarEye’s losses jump 3X to cross Rs 230 Cr in FY22

SaaS-based logistics management platform FarEye has raised over $150 million across seven rounds to date including a $100 million Series E in May 2021. However, the decade-old firm is yet to cross Rs 100 crore in revenue, as per its last reported numbers with the Registrar of Companies (ROC).

While its operating scale grew 53.4% to Rs 97.7 crore in FY22 from Rs 63.7 crore in FY21, its losses blew 3X and neared Rs 235 crore. 

FarEye offers software solutions to manage large logistics platforms' supply chain and delivery across manufacturing, courier, e-commerce, food, and grocery sectors. The sale of services was the sole source of revenue for the company which grew 53.4% to Rs 97.7 crore in FY22, according to its consolidated financial statements with the RoC.

Importantly, FarEye generated 80% of the operating revenue from the global markets which increased 60% to Rs 78.8 crore during FY22. While the company didn’t disclose country-wise revenue, FarEye has three subsidiaries in America, Singapore, and the UK.

The Noida-based company earned Rs 31.1 crore mainly from interest on fixed deposits and other financial instruments.

As far as expenses go, employee benefits cost formed 64.1% of the overall cost which surged 2.25X to Rs 231.6 crore in FY22 from Rs 102.8 crore in FY21. It also includes Rs 13 crore as ESOP expenses, which were settled in cash.

Legal professional charges and information technology costs, which include server and software, grew 2.26X and 2.16X, respectively, to Rs 51.9 crore and Rs 36.4 crore in FY22.

The cost of advertising promotional expenses shot up over 3X to Rs 15.8 crore in FY22 which pushed FarEye’s overall expense by 2.29X to Rs 361.30 crore in FY22 from Rs 157.70 crore in FY21.

Unlike its revenue which grew 53%, its losses blew around 3X to Rs 232.5 crore in FY22 from Rs 79.8 crore in FY21. 

High burn also worsened the firm’s ROCE and EBITDA margin, which were registered at -35.87% and -176.55%, respectively, in FY22. The company spent 3.70 to earn a single unit of operating revenue.