MyGate total revenue nears Rs 110 Cr in FY24; losses shrink by 82%

Community management app MyGate achieved 35% year-on-year growth in operating revenue in the last fiscal year. Significantly, the firm also reduced its losses by over 82% in FY24.

MyGate’s operating income rose to Rs 96.2 crore in FY24 from Rs 71.1 crore in FY23, its consolidated financial statement with the RoC shows.

The company draws majority of its revenue from brand advertising followed by subscription to its SaaS product. It also made other Income of Rs 12.9 crore in the fiscal year ending March 2024 which pushed its total revenue to Rs 109.1 crore.

The MyGate app enables residents to manage daily community interactions and security. Through the app, residents can approve visitor entries and exits, communicate with neighbors, track attendance of domestic helps, and handle payments for society maintenance charges. In September 2024, it also expanded into building an integrated platform of select consumer devices, with the launch of smart locks.

When it comes to expenses, MyGate’s total operating expenses decreased by 12.8% to Rs 129.5 crore from Rs 148.5 crore in FY23. Cost reductions were especially notable in employee benefits, with employee-related expenses (excluding ESOP costs) declining by 16.5% to Rs 66.4 crore. During the period, the cost of materials consumed also dropped by 27.3%to Rs 1.6 crore. Other expenses stood at Rs 61.5 crore, reflecting a 7.8% decrease from Rs 66.7 crore in FY23.

MyGate narrowed down losses by 82.4% to Rs 39.8 crore during the last fiscal year as compared to Rs 226.4 crore in the previous fiscal year.

MyGate crossed the Rs 100 crore revenue milestone without any external fundraising in FY24. The company previously raised $56 million in a Series B funding round in October 2019, followed by a $12 million strategic investment from Urban Company and insurance firm Acko in November 2022, after a three-year gap.

“Over the past three years, our revenues have grown around 13 times, from Rs 8 crore in FY21 to Rs 109 crore in FY 24, as we have shifted focus from distribution of product to revenue generation initiatives. Performance has improved further in the current fiscal (i.e. FY25), with many months which were PAT positive and where we shown 100% YoY growth. With improvements in subscription revenue, strong interest from brands in reaching our audience and our entry into smart devices, we’re confident of hitting Rs 160 crore in FY25 with full year Adjusted PAT,” said Abhishek Kumar, co-founder and CEO of MyGate.

At the close of FY24, the company announced an employee stock buyback program (ESOP) benefiting over 50 employees and subsequently promoted Kumar to CEO of the company.

Even as MyGate’s journey to profitability continues on the back of strong growth, the firm still has some lifting to do. The real challenge is the value conscious Indian buyer, always difficult to please, as Mygate adds on more services to them. In the category creating effort it has made, the monetisation of its core premise (of visitor approvals and security for gated complexes) remains a complex challenge.

The cost cutting indicates a plan to be more selective perhaps and look at higher margin offerings. The company’s recent stride to build an integrated platform in the Smart Home devices category, with the launch of Smart Locks, appears to be in the right direction given its close association with modern security.

For the pioneering firm, there is little doubt that it has changed the market for good, and will hope that rewards for being a pioneer and doing the hard miles follow sooner than later.

Update: The story has been updated after MyGate provided a quote from the founder regarding the company’s financial results.