Cashfree posts Rs 643 Cr revenue and Rs 133 Cr loss in FY24

Digital payments enabler Cashfree posted flat growth for the fiscal year ending March 2024. The sluggish revenue growth is attributed to a ban imposed by the Reserve Bank of India on onboarding new merchants for nearly a year, from December 2022 to December 2023.

Cashfree Payments’ revenue from operations increased 4.7% to Rs. 642.7 crore in FY24 from Rs 613.8 crore in FY23, according to its annual financial statements reported to the Registrar of Companies.

Since the company hasn’t raised fresh capital in the last 30 months, its non-operating income from bank deposits and income tax refunds stood at barely Rs 2.1 crore. Including this income, the Bengaluru-based company reported a total revenue of Rs 444.7 crore in the last fiscal year.

While the firm didn’t provide a revenue breakdown for FY24, sales of services were the sole source of revenue, according to filings. Our analysis indicates that Cashfree generates income through transaction-based fees, primarily collected as a percentage or flat fee on payment and disbursement transactions, along with services like business payouts, among others.

The cost of materials emerged as the largest cost center for Cashfree which remained steady at Rs. 426.6 crore. Employee benefits spiked 23% to Rs 245 crore in FY24. Other expenses include the merchant discount rate (MDR), infrastructure, and compliance costs. Overall, the firm’s total expenses saw a modest rise, reaching Rs. 779.43 crore in FY24.

To check complete Revenue Breakdown visit thekredible.comView full data

Akin to its revenue, Cashfree’s losses grew marginally to Rs 135 crore during the last fiscal year, compared to Rs 133 crore in FY23.

Cashfree majorly competes with Razorpay, PayU, and CCAvenue. Razorpay's payment gateway business generated Rs 2,068 crore in revenue in the last fiscal year, with a profit after tax of Rs 34 crore.

Unlike FY23, PayU’s revenue grew only 11% to $444 million in the fiscal year ending March 2024 and also slipped into losses.

According to TheKredible, Cashfree has raised approximately Rs 321.57 crore ($42 million) over its nine-year journey. Notably, Cashfree hasn’t raised any capital since June 2021, when it closed the final tranche of its Series B round. The firm initially announced its $35 million Series B round in November 2020. According to Entrackr sources, the firm is currently in talks to raise fresh capital, although they have yet to materialize.

The Bengaluru-based company is likely to accelerate its scale in the ongoing fiscal year as the impact of the PA/PG and recently acquired Payment Instrument (PPI) licenses is expected to pan out in FY25.