INDmoney revenue spikes 73% in FY24, earns Rs 58 Cr from other income

INDmoney has continued its growth streak in the fiscal year ending March 2024. The Tiger Global-backed firm has managed 73.2% year-on-year growth in its operating revenue during the last fiscal. At the same time, its losses grew only 12% in the same period.

INDmoney’s revenue from operations spiked 73.2% to Rs 70 crore in FY24 from Rs 40.6 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies (RoC) show.

INDmoney lets users manage their money through investments in mutual funds including Indian and overseas stocks. It claims to have amassed 10 million users on the platform.

Income from distribution services accounted for 76% of the operating revenue which increased by 56% to Rs 53.6 crore in FY24, whereas income from broking activities surged to Rs 10.7 crore in FY24 from Rs 10 lakh in FY23. The company added another Rs 6 crore from allied services during the last fiscal year.

The Gurugram-based company also made Rs 57.7 crore from interest and gain on sale of current investments which pushed its total revenue to Rs 128 crore in FY24. This significant other income is a result of its huge current financial assets which stood at Rs 725 crore at the end of March 2024.

When it comes to expenses, employee benefits remained the largest cost driver for INDmoney. This overhead grew 11% to Rs 124.53 crore in FY24 from Rs 111.86 crore in FY23. IT expenses stood at Rs 57.18 crore while marketing burn contributed Rs 33.80 crore in FY24.

Finance, depreciation, depletion, amortization and other expenses pushed the total expenditure to Rs  233.6 crore in the last fiscal. This is a 17% increase from Rs 199 crore in the previous fiscal year.

INDmoney reported a 12% growth in its net losses to Rs 82.55 crore in FY24. Its ROCE and EBITDA margin stood at -11.47% and -75.6%, respectively, on a unit level, it spent Rs 3.32 to earn a rupee during FY24.

INDmoney has raised $133 million since its inception in 2019. The Ashish Kashyap-led company raised its latest funding worth $75 million in January 2022 at a valuation of more than $600 million.

While obviously good at raising funds, it remains to be seen if INDmoney can find a market big enough and willing to give it a shot. It's in a segment where massive consumer shifts are not unknown, even though INDmoney itself doesn't seem to have got there yet. Something like investing overseas, where awareness is still low could become winners if the market shifts in that direction. However, it remains a cluttered and tough space to eke out a profitable existence, and INDmoney will need to make a big bet soon, despite its already high cost structure.