Servify Achieves Steady Growth in FY25

Servify, a prominent post-sales service firm, has demonstrated steady growth over recent fiscal years. This trend continued as the company announced a remarkable 16% increase in revenue for FY25, alongside a 14% reduction in its losses to Rs 85 crore, in light of a possible public listing this year.

Financial Performance Overview

Based in Mumbai, Servify reported that its revenue from operations increased to Rs 781 crore in FY25, up from Rs 675 crore in FY24, based on its annual consolidated financial statements submitted to the Registrar of Companies (RoC). Established in 2015, Servify provides brand-authorised after-sales support for various devices including mobile phones, gadgets, electronics, and home appliances. The firm’s platform enables users to register devices, maintain invoices, and access services both within and beyond the warranty period.

Partnerships and Global Reach

Servify boasts partnerships with over 75 leading brands such as Apple, Bose, and HP, operating across 18,000 service locations in more than 40 countries. The post-sales company primarily generates revenue through white-labelled protection plans available via mobile apps and web portals, which accounted for 97% of its total operating income, growing 14% to Rs 758 crore in FY25.

Revenue from Diverse Markets

Interestingly, Servify recorded greater revenue from the United States compared to India, with the US contributing 51% of total revenue at Rs 400 crore in FY25, reflecting a 38% year-on-year growth. In contrast, India accounted for Rs 330 crore, while additional revenue streams originated from Europe, Canada, the United Arab Emirates, Turkey, and other markets.

Cost Analysis

The company’s material costs, including underwriting, commissions, servicing expenses, and mobile handsets, represented 68% of total costs, surging 20% to Rs 592 crore in the previous fiscal year. Servify experienced a slight decline in employee benefits, which reached Rs 151 crore, down from Rs 160 crore in FY24. This expense figure includes Rs 16.4 crore in ESOP costs, characterised as non-cash expenses.

Increasing Operational Costs

IT, legal and professional fees, along with depreciation and amortisation, contributed to an overall cost increase to Rs 876 crore in the last fiscal year, reflecting a 12% rise compared to FY24. However, the company’s growing operating scale outpaced its expenses, leading to a 14% reduction in losses to Rs 85 crore in FY25, down from Rs 99 crore in FY24. The firm’s ROCE and EBITDA remained negative at -33.05% and -6.53%, respectively, with Servify spending Rs 1.12 to generate each rupee of operating revenue in FY25.

Current Assets and Financial Backing

As of March 2025, Servify reported total current assets of Rs 571 crore, complemented by a cash and bank balance of Rs 145 crore. Supported by Blume Ventures, Servify has raised over $135 million to date, which includes a $65 million Series D funding round led by Singularity Growth Opportunities Fund. Additionally, the firm secured $7.8 million in its ongoing Series D round led by BEENEXT in March 2025, valuing the company at approximately $700 million.