OlaMoney, the fintech platform, recently made headlines with its merger with Avail Finance, a neo-banking firm acquired by the ride-hailing giant Ola. However, assessing the impact of this merger on the company’s financial performance will require some patience. OlaMoney is yet to file its financial reports for FY23, and it has just released its FY22 results after a significant delay of almost one and a half years.
OlaMoney’s revenue from operations surged 157% to Rs 110 crore during the fiscal year ending March 2022 as compared to Rs 42.8 crore in FY21, as per the company’s standalone financial statements filed with the Registrar of Companies.
Besides this, OlaMoney earned Rs 11.95 crore from the interest and gains on financial assets, taking the overall revenue to Rs 121.96 crore in FY22.
Ola Money, a digital wallet service by Ola, simplifies online payments across various services and offers diverse funding options. Beyond payments, it expands into areas like micro-insurance and personal loans, fostering partnerships with Indian banks and financial institutions for a broader array of financial services. Revenue streams include commissions from merchants on wallet transactions, sales of insurance products, and income derived from facilitating services like loan support and payments for lenders and sellers.
Following the accelerated growth in topline, the company also turned profitable during the fiscal year (FY22) and recorded Rs 8.68 crore profits against Rs 56.23 crore loss in FY21.
Employee benefits stood as the largest cost for the company at Rs 57 crore in FY22, forming around 50% of the total expenses. In FY21, this cost was registered at Rs 66 crore. However, legal and promotional costs surged 3X and 2.5X respectively to Rs 8.5 crore and Rs 4.8 crore in FY22.
The company also incurred technology, payment gateway, brokerage, commission, recruitment and training expenses during the year which took the overall expenses to Rs 113.28 crore in FY22. In FY21, the total expenses were Rs 115.42 crore.
On a unit level, OlaMoney spent Rs 1.03 to earn a rupee of operating income during FY22.
As per the data intelligence platform TheKredible, OlaMoney has raised over Rs 400 crore funding to date and was valued at around Rs 1,650 crore.