PaisaWapas Sees Remarkable Revenue Growth of 24% Year-on-Year

PaisaWapas has achieved steady growth, highlighted by a substantial increase in its revenue from operations, which rose 24% year-on-year for the fiscal year ending March 2024. The Bengaluru-based cashback and coupons app also reported an increase in profits by approximately 17% during the same timeframe.

According to financial statements sourced from the Registrar of Companies (RoC), PaisaWapas experienced a revenue growth from operations to Rs 68.7 crore in FY24, compared to Rs 55.5 crore in FY23.

Understanding PaisaWapas Operations

Operating as a cashback and deals platform, PaisaWapas connects shoppers with various e-commerce partners. The company generates revenue primarily through affiliate commissions and shares a portion as cashback with users. Furthermore, they earn income from promotional activities and advertisements.

Revenue from these services skyrocketed by 25.8%, reaching Rs 66.7 crore in FY24, representing 97% of the overall operating revenue. However, revenue from goods sold saw a minor increase of 35.4%, totalling Rs 1.53 crore.

Additionally, the company garnered Rs 30 lakh from alternative income sources, resulting in a total income of Rs 69 crore for the last fiscal year.

PaisaWapas Financial Highlights

The major expenditure for PaisaWapas was cashback to users, which decreased 14.6% to Rs 19.5 crore. In contrast, payouts made to users grew by 2.2 times to Rs 15.5 crore. Advertising expenses surged by 95.1%, reaching Rs 16 crore, showcasing the company’s dedication to customer acquisition and engagement. Employee benefit costs also rose significantly by 41.1% to Rs 5.22 crore. As a result, total expenses increased by 25%, amounting to Rs 64.4 crore, up from Rs 51.5 crore in FY23.

PaisaWapas posted a profit increase of 16.7%, bringing it to Rs 3.5 crore compared to Rs 3 crore in FY23. The firm recorded an EBITDA of Rs 4.86 crore, achieving an EBITDA margin of 7.04% and a Return on Capital Employed (ROCE) of 41.5%.

Asset Growth and Funding

As of March 2024, the Bengaluru-based platform reported current assets valued at Rs 22 crore, while cash and bank balances increased by 75% to Rs 7 crore. Reports indicate that PaisaWapas has successfully raised a total of $46K in funding to date, with Vividhity Ventures being the lead investor, owning 2% of the company’s stake. Founders Shankar Singh and Ashish Kumar together hold a commanding 94% stake in the company.

Competitive Landscape

PaisaWapas faces competition from other players in the cashback market, including CashKaro, CouponDunia, GoPaisa, and GrabOn, among others.