SmartCoin turns profitable with over 8X scale in FY22

After witnessing a slight dip in a pandemic-stricken year (FY21), the microlending platform SmartCoin scaled over 8X and approaches Rs 90 crore in revenue in FY22. The Lightrock-backed company turned itself profitable during the same period as well. 

Founded in 2016, SmartCoin is an app-based consumer lending platform that offers instant personal loans to self-employed and salaried individuals. The loans are distributed in a  range of Rs 1,000-70,000 with a tenure of 91  to 270 days. The interest rates offered by SmartCoin vary from 20% to 36%.

Platform and consultancy fees accounted for 75.17% of the total operating revenue, which surged 9.8X to Rs 65.43 crore during FY22. The rest of the collections came from interest income on consumer loans which grew 6.6X to Rs 21.6 crore during FY22.

The company also has an income of Rs 2.31 crore from the interest on fixed deposits and profit on the sale of mutual funds during FY22.

 Advertisements ate up 31.8% of the total expenditure and soared 4.35X to Rs 27.47 crore in FY22. Being a loan provider company, SmartCoin made a provision of Rs 19.78 crore for NPA’s (non-performing assets) during FY22.

Its employee benefit and cloud/software charges swelled 2.2X and 2.5X to Rs 16.7 crore and Rs 3.6 crore respectively, pushing SmartCoin’s total expenditure to Rs 86.27 crore in FY22. 

With over 8X scale and well gripped over its expenditure, SmartCoin turned itself into green (profitable) with Rs 2.55 crore during FY22 where the figure stood at negative (loss) Rs 12.4 crore in FY21.

Coming to the ratios, its ROCE and EBITDA margin changed drastically and registered at 11.25% and 14.02% respectively in FY22. On a unit level, it spent Re 0.99 to earn a unit of operating revenue.