ZingHR posts Rs 84 Cr revenue in FY23; losses surge 84%

HR tech platform ZingHr has managed a 51% growth in its operating scale in the fiscal year ending March 2023. However, the company’s losses outpaced its revenue growth and neared Rs 21 crore in the same period.

Tata Capital-backed ZingHR’s revenue from operations grew to Rs 84.48 crore in FY23 from Rs 55.77 crore in FY22, according to its consolidated financial statements with the Registrar of Companies (RoC).

ZingHr is an HR tech platform which offers solutions such as recruitment, payroll, employee management, talent management, payroll, and others. The company claims to have over 1,100 worldwide customers with more than two million active users across 8 countries.

Zing HR

The sale of subscription-based software was the only source of revenue for ZingHr which surged 51.48% during FY23. The company also made Rs 1.63 crore from finance income (non-operating) which tallied its total revenue to Rs 86.1 crore in the last fiscal year.

Similar to other recruiting and allied servicing platforms, employee benefits expenses accounted for 55.52% of the overall expenditure. This cost surged 48% to Rs 59.2 crore in FY23 from Rs 39.8 crore in FY22.

The firm’s marketing, product maintenance, professional, server, data security, and other overhead caused a 61.5% rise in its total expenditure to Rs 106.69 crore in FY23 from Rs 66.05 crore in FY22. Head to TheKredible for a detailed expenses breakup.

Expenses Breakdown

Total ₹ 66.05 Cr
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Total ₹ 106.69 Cr
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  • Server and Data Security charges
  • Employee Benefit
  • Travelling and conveyance
  • Professional charges
  • Selling and Marketing expenses
  • Product maintenance charges
  • Other Expenses

At the end, the firm’s losses jumped by 84.4% to Rs 20.56 crore in FY23. Its ROCE and EBITDA margin worsened to -54% and -23%, respectively. On a unit level, ZingHR spent Rs 1.27 to earn a rupee in FY23.


FY22 FY23
EBITDA Margin -17% -23%
Expense/₹ of Op Revenue ₹1.18 ₹1.26
ROCE -17% -54%

ZingHR has raised around $13 million to date including its $10 million from Tata Capital. According to the startup data intelligence platform TheKredible, Tata Capital is the largest external stakeholder with 35.82% followed by Erasmic Venture Fund and Triton Fund.

View TheKredible for the full shareholding pattern.

While the high shareholding of Tata Capital might indicate a high conviction in the firm and its founders, ZingHR is up against it in a field that is both cluttered and competitive. Product differentiators are few and far between, making too much price elasticity impossible. HRtech firms might soon realize that besides the tech they offer to their clients, it is the cost of the same tech for their products that will eventually decide their future. We believe the category will find it tougher to raise capital going ahead, short of some disruptive options that are not yet visible.

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