Clear reports Rs 272 crore revenue and Rs 96 crore loss in FY25

Following a strong FY24, where Clear (formerly Cleartax), a tax and financial solutions provider, posted over 90% revenue growth, the company sustained its momentum in FY25. Its operating scale rose 30% year-on-year, while losses remained largely flat during the period.

Clear’s revenue from operations grew 30% year-on-year to Rs 272.15 crore in the last fiscal year from Rs 209.84 crore in FY24, according to its consolidated financial report sourced from the Registrar of Companies (RoC).

Clear provides tax and financial solutions for businesses and consumers. Its offerings include accounts payable, e-invoicing, and invoice discounting under its finance, compliance, and supply chain clouds. For individuals, it simplifies tax filing and related services.

Clear primarily generates revenue from taxation and corporate secretarial services, which contributed Rs 265 crore. The remaining Rs 3.19 crore came from platform and technical services, along with commissions earned as a distributor for mutual fund transactions.

The firm also earned Rs 4.96 crore via non-operating activities, including interest income, pushing its total revenue to Rs 277.11 crore in FY25.

On the expenses front, employee benefits were the largest cost, rising 10% to Rs 220.83 crore in FY25, including Rs 14.97 crore in non-cash ESOP costs. Web hosting and software support expenses grew 33.7% to Rs 52.94 crore, while advertising and promotion spending surged over 50% to Rs 28.5 crore for the year ended March 2025.

Recruitment charges and manpower outsourcing cost zoomed over 2.7X in FY25 to Rs 13.76 crore while Clear also spent Rs 10.4 crore on system integration charges and sales commission during FY25. Other overheads including legal & professional, travelling charges, rent etc pushed the total expenses to Rs 369.16 crore, which rose 19% compared to Rs 310 crore in FY24.

The employee benefits expense may decline in the ongoing fiscal year as the company laid off more than 16% of its workforce as part of a restructuring exercise.

In the end, the company’s losses remained flat at Rs 95.62 crore in FY25 despite a 30% rise in operating revenue. Its EBITDA margin and ROCE improved but remained negative at -33.62% and -173.2%, On a unit level, Clear spent Rs 1.36 to earn a rupee of operating revenue in FY25.

As of March 31, 2025, Clear had cash and bank balances of Rs 78.42 crore, while its current assets stood at Rs 180.72 crore.

According to TheKredible, Clear has raised $140 million to date, including its most recent $75 million round in October 2021 from Kora Capital, Stripe, and others.