Mindgate Achieves Remarkable Growth in Digital Payments Sector

Mindgate, a payments technology company, has recently attracted attention following the acquisition of a 43.5% stake by Prosus’s PayU. This strategic move comes on the heels of Mindgate’s remarkable 34.6% increase in year-on-year revenue, surpassing Rs 250 crore in FY24, with net profits rising 3.6 times.

The consolidated financial statements sourced from the Registrar of Companies (RoC) reveal that Mindgate’s operational revenue grew to Rs 257 crore in FY24, up from Rs 191 crore in FY23.

Mindgate’s Expertise in Digital Payments

Mindgate is renowned for its digital payment solutions, focusing on real-time payment processing and enterprise payment services tailored for banks, financial institutions, and businesses. A significant portion of its income, approximately 87.7%, is derived from subscription-based SaaS services, which increased by 35% to reach Rs 201 crore in FY24.

Revenue streams from transaction processing and annual maintenance services added Rs 40 crore and Rs 16 crore, respectively, to the total. Additionally, the company generated Rs 4 crore from interest on current investments, leading to a total revenue of Rs 261 crore in FY24, compared to Rs 195 crore the previous year.

Understanding Mindgate’s Expenditure

As with many SaaS technology firms, a substantial portion of Mindgate’s expenses—71%—is attributed to employee benefits. This expense increased by 22.6% to reach Rs 163 crore in FY24. Furthermore, other costs such as rent, subscription and membership fees, travel, advertising, and overheads resulted in total expenditures rising by 24.5% to Rs 229 crore in FY24, up from Rs 184 crore in FY23.

Profit Growth and Financial Health

Thanks to the year-on-year growth and effective cost management, Mindgate experienced a 3.6 times increase in profits, reaching Rs 23.2 crore in FY24, up from Rs 6.5 crore in FY23. On a unit level, the company spent Re 0.89 to earn a rupee during FY24, alongside enhanced ROCE and EBITDA margins of 17.03% and 13.6%, respectively. By the conclusion of FY24, Mindgate’s total current assets amounted to Rs 211 crore, which included cash and bank balances of Rs 74 crore.