After registering six-fold growth in FY22, car owners-focused app Park+ has continued its growth journey in the last fiscal year as well. The Epiq Capital-backed company posted a 2.5X surge in its revenue with decent control on expenses as Park+ losses grew 65%.
Four-year-old Park+’s revenue from operations grew 2.5X to Rs 96 crore in FY23 from Rs 39 crore in FY22, its consolidated annual financial statements sourced from the Registrar of Companies shows.
Financial Graph
Founded by Ankit Lakhotia, Park+ provides car cleaning, home, mall, and office parking, fine (challan) payments, insurance premium payments as well as car service and maintenance. The company also forayed into ancillary services such as FASTags and EV charging networks.
The sale of services which includes commissions of fastags, rental of access control, advertisement, valet service, and parking formed 75% of the total operating income which surged 2.4X to Rs 72 crore in FY23. The rest of the collections came from the sale of products such as Access control, Fastag, radio frequency tag, and others.
The company added Rs 7 crore from interest on bank deposits which tallyed its total income to Rs 103 crore in FY23. See TheKredible for the detailed revenue breakup.
On the cost side, employee benefits accounted for 39% of the overall expenditure which spiked 47.2% to Rs 78 crore in FY23. This includes Rs 4.5 crore as ESOP cost while the cost of procurement of Fastag and Supertag soared 2.9X to Rs 36 crore in FY23.
Its advertising-marketing, outsourced, communication, legal professional, and other overheads pushed its total expenditure by 94.2% to Rs 202 crore in FY23 from Rs 104 crore in FY22.
See TheKredible for the expense breakdown.
Expense Breakdown
https://thekredible.com/company/park-/financials
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https://thekredible.com/company/park-/financials
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- Employee benefits
- Cost of supertag and fastag
- Marketing and advertisement
- Outsourced cost
- Communication and tech
- Others
The prudent cash management helped Park+ to limit its losses which increased by 65% to Rs 99 crore in FY23 as compared to Rs 60 crore in FY22. Its ROCE and EBITDA margin stood at -47% and -92% respectively. On a unit level, the company spent Rs 2.1 to earn a rupee in FY23.
FY22-FY23
| FY22 | FY23 |
The Gurugram-based company targets profitability by the last quarter of 2024 and aims to get into 100 cities in the next couple of years. Currently, it is present in more than 50 cities including Delhi NCR, Bengaluru, and Mumbai, with an inventory of more than 250,000 parking slots, 2,500 residential societies, 250 offices, and 35 malls.
Park+ has raised $54 million across rounds and was last valued at around $355 million. According to the data intelligence platform TheKredible, Peak XV is the largest external stakeholder followed by Matrix and Epiq Capital. Its founder and CEO Amit Lakhotia owns 45% stake.
