Probo posts Rs 459 Cr revenue and Rs 92 Cr profit in FY24

Event-based trading platform Probo has witnessed rapid growth over the past three fiscal years, with revenue rising from Rs 2.6 crore in FY22 to Rs 86 crore in FY23, and surpassing Rs 450 crore in FY24—marking a 5.3X year-on-year jump. Notably, the Peak XV-backed company’s net profit soared 25X year-on-year, approaching Rs 100 crore in FY24.

Probo’s revenue from operations surged to Rs 459 crore in FY24 from Rs 86 crore in FY23, according to its consolidated annual financial statements sourced from the Registrar of Companies (RoC).

Founded by Sachin Gupta and Ashish Garg in 2019, Probo is an event trading platform that allows users to trade their opinions on future events in various categories, such as cricket, football, finance, entertainment, and startups, among others.

The primary revenue source for Probo was platform fees collected from users for contest participation, accounting for 97.8% of the total collection. This income grew 5.4X to Rs 449 crore during the last fiscal year. Income from allied services and other sources, including interest income from current investments, brought Probo’s total income to Rs 474 crore during the last fiscal year.

With a strong presence of YouTube influencers, advertising and promotion accounted for 77% of Probo’s total expenses, soaring 5.2X to Rs 271 crore in FY24 from Rs 52 crore in FY23. Meanwhile, employee benefit expenses grew by 27% to Rs 28 crore in FY24.

Information technology, platform integration, legal, traveling, and other overheads took the overall cost up by 3.5X to Rs 351 crore in FY24. Check TheKredible for the detailed expense breakdown.

The combination of strong revenue growth and controlled costs enabled Probo’s net profit to surge 25X, to Rs 92 crore in FY24, up from Rs 3.7 crore in FY23. The Peak XV-backed firm spent Re 0.76 to earn a rupee during the fiscal year ending March 2024.

Probo’s return on capital employed (ROCE) rose to 42.6%, while its EBITDA margin improved to 26.1%. By the end of FY24, the company's total current assets stood at Rs 274 crore, with cash and bank balances amounting to Rs 169 crore.

Probo has raised around $28 million across several rounds. According to the startup data intelligence platform TheKredible, Peak XV is the largest external stakeholder, with 21.72%, followed by Elevation Capital and The Fundamentum Partnership.

With a virtually unlimited prediction market, Probo is on to a good thing as long as it can keep growing its flock, especially its core user base. It’s clearly doing it right, going by the sharp rise in metrics across the board. The Rs 271 figure on advertising is a surprise, and wouldn’t have passed muster if the firm wasn’t profitable. It is the same profit figures which seem to indicate no further need for further funding for the firm, as it doubles down to build a business that will last. At this stage, the firm must feel confident taking bets on the odds of it hitting the Rs 1000 crore revenue number within 2026.  A unicorn tag could come even before that, if the growth doesn’t falter in FY25.