AlgoBulls Reports Exceptional Growth in Algorithmic Trading Sector

AlgoBulls, a fintech startup dedicated to algorithmic trading, has exhibited remarkable growth during the fiscal year ending March 2024, while maintaining a disciplined approach to expenses, resulting in a net loss increase of only 50%.

The company’s operational revenue skyrocketed to Rs 238 crore in FY24, a significant rise from Rs 54.5 crore in FY23, as detailed in its consolidated financial statement from the Registrar of Companies (RoC).

About AlgoBulls and Its Offerings

AlgoBulls operates as an AI-supported algorithmic trading platform that provides various tools for traders to automate their strategies. Users have the option to create tailor-made strategies or select from an array of pre-existing choices. The revenue generated from these services constitutes 99% of the total revenue.

Expense Overview

On the expense front, AlgoBulls experienced a substantial increase in its largest expenditure, the cost of materials, which soared by 4.5 times to Rs 236 crore in FY24, representing almost 98% of all expenses. Employee benefit costs saw a doubling to Rs 3 crore, and other operational and administrative expenses totalled Rs 2 crore for the fiscal year. Overall, the company’s total expenses escalated by 4.3 times to Rs 241 crore in FY24, up from Rs 56 crore in FY23.

Financial Performance

AlgoBulls reported a net loss of Rs 3 crore in the previous fiscal year, marking a 50% increase. Nonetheless, the company achieved a positive EBITDA of Rs 1 crore, reflecting an enhanced EBITDA margin of 0.42%, while its return on capital employed (ROCE) stood at -35%. For every rupee earned, AlgoBulls incurred a expenditure of Rs 1.01.

Current Financial Position

As of March 2024, AlgoBulls indicated total current assets of Rs 9 crore, which comprises Rs 2 crore in cash and bank balances.

Funding Journey

Reports indicate that AlgoBulls has successfully raised a cumulative total of $2.5 million in funding to date, with a significant $2 million round led by investor Venture Catalysts, which currently holds a 2% stake in the company. The founders of AlgoBulls—Pushpak Dagade, Jimmit Patel, and Suraj Bathija—together retain a 66.66% ownership of the company.