Mswipe growth remains sluggish in FY23; cuts losses by 45%

Following a 40% wipeout in its revenue during the COVID-stricken year (FY21), Mswipe struggled to expand its scale. In a sign of recovery albeit slow, the  fintech company posted nearly 14% growth in revenues at Rs 274 crore during the fiscal year ending March 2023. The firm also managed to curtail its losses significantly during the last fiscal year.

Mswipe’s revenue from operations increased 13.69% to Rs 274 crore in FY23 compared to Rs 241 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies show.

Financial FY23

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Founded in March 2011 by Manish Patel, Mswipe provides payment services that make mobile PoS (mPOS) devices for merchants. The company also has a payment gateway for processing payments online and an automated payment settlement system for merchants via UPI, Google Pay, PhonePe, Bharat QR, and BHIM.

Income from MDR (Merchant Discount Rate) contributed 59% of the total revenue which increased 16.5% to Rs 162 crore in FY23. For the uninitiated, MDR refers to the fee charged by the company on the processing of debit and credit card transactions. Support service fees and sign-up are some other sources for collections for the Mumbai-based firm.

Revenue Breakdown

FY22

Total ₹ 241 Cr

FY23

Total ₹ 274 Cr

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See TheKredible for the detailed revenue breakup.

On the cost side, transaction processing charges  (fees charged by the bank from the companies to facilitate credit card, debit card, UPI, and other non-cash payments)  accounted for 44% of the overall expenditure. This expense increased 9% to Rs 145 crore in FY22. Its employee benefit cost declined 8% to Rs 79 crore during the same period.

The company’s contract, information technology, legal-professional, provisions, and other costs took its total expenditure to Rs 328 crore in FY23, down from Rs 338 crore in FY22.

Expense Breakdown

FY22

Total ₹ 338 Cr

FY23

Total ₹ 328 Cr

• Employee benefits

• Transaction processing

• Contract cost

• Information technology

• Legal professional charges

• Others

To check complete Expense Breakdown visit http://thekredible.comView full data

Check TheKredible for the complete expense breakup

FY22-FY23

	FY22	FY23
Expense/₹ of Op Revenue	₹1.40	₹1.20
ROCE	-13%	-9%
EBITDA Margin	-10%	-3%

The effective cost mechanism helped Mswipe to contract its losses by 45.36% to Rs 49 crore in FY23 from Rs 90 crore in FY22. Its ROCE and EBITDA margin stood at -9% and -3% respectively. On a unit level, it spent Rs 1.20 to earn a rupee in FY23.