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Highlights
Mswipe’s Recent Performance Analysis
Mswipe experienced challenges in achieving growth during the last fiscal year, with its operating revenue showing minimal change. Despite this, the Alpha Wave-backed enterprise managed to curtail its losses slightly over the same timeframe.
Operating Revenue Overview
According to the consolidated financial statement submitted to the Registrar of Companies, Mswipe’s operating revenue exhibited a modest increase of 1%, rising to Rs 276.9 crore in FY24 from Rs 274.4 crore in FY23.
Company Profile
Based in Mumbai, Mswipe is a B2B payment service provider delivering a range of POS solutions, which includes:
- Card payments
- Wallets
- Mobile payment applications
- Banking applications
- Contactless payments
- QR code payments
Revenue Sources
Transaction processing fees remained the primary source of revenue for Mswipe, contributing 63.09% of total operating revenue. This segment saw a growth of 7.6%, reaching Rs 174.7 crore last fiscal year. The support service fees also increased by 4% to Rs 70.1 crore, whereas income from signup fees sharply declined by 44.4% to Rs 5 crore.
Overall, the company’s total income, encompassing non-operating revenue, rose by 1.39% to Rs 282.2 crore in FY24.
Expense Analysis
On the expenditure side, IT costs, which constitute the largest component, escalated by 5.2% to Rs 164.2 crore, accounting for 50.16% of total expenses. Employee benefit expenses saw a slight decrease of 2.2% to Rs 77.3 crore. Depreciation expenses increased by 7.1% to Rs 34.5 crore, and other expenses amounted to an additional Rs 51.3 crore.
In conclusion, Mswipe succeeded in slightly reducing its total expenses by 0.3% to Rs 327.3 crore for the fiscal year ending March 2024.
Net Losses and Financial Metrics
Mswipe managed to lessen its net losses by 5.7%, bringing the figure down to Rs 46.2 crore in FY24. The company recorded a Return on Capital Employed (ROCE) of -16.94% and an EBITDA margin of -2.09%. Notably, Mswipe expended Rs 1.18 to generate Rs 1 of operating revenue in FY24. As of March 2024, the firm reported Rs 262 crore in current assets, which includes Rs 157 crore in cash and bank balances.
Funding and Regulatory Developments
To date, Mswipe has secured over $125 million (over Rs 1,000 crore) from various prominent investors, including:
- Matrix Partners
- B Capital
- DSG Consumer Partners
- Epiq Capital
- UC-RNT
- Ola
In February, Mswipe was granted a payment aggregator (PA) license by the Reserve Bank of India (RBI), allowing the company to provide full-stack payment solutions to businesses.
Industry Trends
Mswipe appears to align with the growing trend among B2B firms in the fintech sector, focusing on minimising losses rather than aggressively pursuing growth, as they search for a more sustainable business model. In a market that is becoming increasingly competitive with rapid technological advancements and cost fluctuations, payment service providers are facing significant hurdles. The year 2025 is anticipated to be pivotal for many in the sector.
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