RapiPay nears Rs 440 Cr revenue in FY23, losses surge 2.3X

Fintech startup RapiPay grew at a rapid clip with a 78% growth during FY22  but its growth rate decelerated in the following fiscal year. Nevertheless, the firm clocked nearly Rs 440 crore in revenues during FY23.

RapiPay’s revenue from operations increased 18.3% to Rs 439 crore in FY23 from Rs 371 crore in FY22, according to its annual financial report filed with the Registrar of Companies. This comes after a $15 million round raised by the Noida-based company at the end of FY22.

RapiPay offers a wide suite of banking and financial solutions tailored for businesses, including aided payment services, point-of-sale solutions, and loans designed for micro, small, and medium enterprises (MSMEs).

The company makes money from providing services in the digital payment solution space via commission. This income surged 26% to Rs 296.1 crore in FY23. While the sale of digital products/services and devices collectively contributed Rs 142.9 crore to the collections during the previous fiscal year.

Last year, RapiPay introduced its super app NYE which provides salary and current accounts, payment solutions, retail and business loans, BNPL, investment opportunities and insurance coverage to businesses.

Service fees and commissions accounted for 67% of the company’s overall cost in FY23. Expenses here have followed revenue growth, rising 11.8% to Rs 360 crore in FY23. Its employee benefits shot up 2.7X to Rs 114.2 crore in FY23 which also includes Rs 48.1 crore as ESOP cost which is non-cash in nature.

RapiPay spent another Rs 14.4 crore towards legal and professional fees which catalysed its total expenditure by 32.2% to Rs 538 crore in FY23.

All those have meant the company reported a loss of Rs 93.2 crore in FY23 in contrast to Rs 40 crore in FY22. Its ROCE and EBITDA worsened to -74.17% and -17.79% while Rapipay spent Rs 1.23 to earn a unit of operating revenue in FY23.