Vyapar’s Financial Performance in FY25

Vyapar, a prominent business accounting software provider, faced substantial losses in FY25 while still achieving notable expansion. Despite narrowing losses, the company’s cash reserves significantly diminished throughout the previous fiscal year.

Financial Summary for FY25

In FY25, Vyapar’s operating revenue surged by 53% year-on-year, reaching Rs 69 crore, an increase from Rs 45 crore in FY24. This information can be found in the consolidated financial statements filed with the Registrar of Companies (RoC).

About Vyapar

Founded in 2018, Vyapar provides small and medium enterprises (SMEs) with essential tools for managing receivables and payables, inventory oversight, and generating customised invoices, payment reminders, and multi-language transaction messages. Notably, 90% of the income stems from software license sales, with the remainder originating from service subscriptions.

Expenses and Cost Management

Employee benefits constitute the largest expense for Vyapar, making up 72% of total costs. This expenditure rose by 11% from Rs 92 crore in FY24 to Rs 102 crore in FY25. Other operating expenses, including customer support, rent, and marketing, contributed an additional Rs 39 crore, leading to an overall income increase of 11% year-on-year to Rs 141 crore from Rs 127.5 crore in FY24.

Net Loss and Financial Ratios

Despite the challenges, Vyapar managed to reduce its net loss by 13%, bringing it down to Rs 63 crore, compared to Rs 72.6 crore in FY24. The return on capital employed (ROCE) and EBITDA margin were reported at -62.61% and -102.9%, respectively. The company’s expenditure was Rs 2.04 to earn a rupee of operating revenue in FY25.

Asset Management

The company’s current assets decreased significantly to Rs 89 crore in FY25, compared to Rs 141 crore in FY24. Furthermore, the cash and bank balance was severely reduced by 93%, dropping to Rs 6 crore from Rs 91 crore in FY24.

Funding and Investments

To date, Vyapar has garnered a total of $36 million in funding, with Indiamart and WestBridge serving as lead investors, holding 25.5% and 16% stakes in the company, respectively.