Bootstrapped SaaS firm Wingify has crossed the Rs 220 crore revenue mark in the fiscal year ending March 2023 but it didn’t manage any notable growth. Moreover, the firm’s profit also narrowed as its cost on staff grew considerably.
Wingify’s revenue from operations increased 16.8% to Rs 223 crore in FY23 from Rs 191 crore in FY22, according to its consolidated financial statements filed with the Registrar of Companies.
The company offers SaaS solutions to online enterprises, supporting them in optimizing their conversion rates through their proprietary tool known as the Visual Website Optimizer (VWO). Income from the sale of VWO products is the sole source of revenue for Wingify in FY23.
The company serves over 20,000 customers and has a global presence in more than 150 countries. Wingify’s 97% revenue came from international markets such as the US, Canada, Europe, Australia, Germany, and Netherlands.
After witnessing strong demand in South Asian markets like Indonesia, Singapore, and Thailand, the 13-year-old company is now looking to expand its presence in APAC and Latin America.
Like many SaaS firms, employee benefits were the largest cost center for Wingify and constituted 70.7% of the overall expenditure. This cost grew by 28.3% to Rs 118 crore in FY23 from Rs 92 crore in FY22. In 2022, the company’s workforce grew by 60%, taking the total employee count close to 400 across India and six global locations.
Legal fees, advertisement, and IT costs took its total expenditure to Rs 167 crore in FY23 from Rs 133.5 crore in FY22. Head to startup data intelligence platform TheKredible for more details.
- Employee benefit expense
- Legal professional charges
- Advertising promotional expenses
- Information technology expenses
As of FY23, founder Paras Chopra’s annual remuneration stood at Rs 17.95 crore while the firm’s CEO Sparsh Gupta took an annual salary of Rs 5.82 crore. Chopra holds a majority stake in the company while Gupta has nearly 5% stake in the Delhi-based firm. Check TheKredible for a complete cap table.
Due to a rise in employee benefits, Wingify’s overall cost jumped as well, and outpaced the revenue growth. Profits for Wingify dipped by 12.1% to Rs 51 crore in FY23 from Rs 58 crore in FY22. Its ROCE and EBITDA margin stood at 20.06% and 28.98% in FY23. On a unit level, it spent Rs 0.75 to earn a unit of operating revenue.
Expense/₹ of Op Revenue
Wingify is one of the earliest SaaS success stories from India, and one could argue that the fact it has endured is partly because it has remained bootstrapped. A thing of beauty in a market where funded firms have struggled to achieve the same results. The huge customer base and familiarity with their problems is probably where the firm will seek its next big winner, but the founder and leadership team deserve kudos for their focus on what works. Distractions would have been aplenty, and the only one they will need to consider now it seems, is the offer they simply can’t refuse.