Fintech Startup RapiPay Records 2.3X Increase In Net Loss At Rs 93.3 Cr in FY23
Fintech startup RapiPay witnessed its net loss more than double to Rs 93.3 crore during the financial year 2022-23 (FY23), compared to Rs 40 crore in the preceding fiscal year. This increase in losses was attributed to a significant surge in employee benefit expenses.
RapiPay's standalone financial statement revealed a moderate growth of 18.3 per cent in operating revenue, reaching Rs 439.2 crore in the reviewed fiscal year from Rs 371.4 crore in FY22.
The startup primarily provides digital banking services and generates the majority of its revenue from service sales, which amounted to Rs 432.8 crore in FY23, a rise from Rs 365.8 crore in the prior year.
Revenue derived from the sale of products experienced a 14 per cent year-on-year increase, reaching Rs 3.6 crore in FY23.
Incorporating interest income and various other non-operating income, RapiPay's total revenue expanded to Rs 444.7 crore in FY23 from Rs 374.1 crore in the previous year.
Established in 2019 by Yogendra Kashyap, RapiPay offers a comprehensive range of banking services to consumers through its financial super app called NYE. Additionally, it provides assisted payment services, POS solutions, and MSME loans.
In February of the previous year, RapiPay secured USD 15 million in a funding round led by investors such as Varun Jaipuria of RJ Corp, Rahul Gautam of Sheela Foam, DLF Family Office, and Rohan Kumar of DS Group. This funding was earmarked for the launch of their platform NYE.
In the same period of 2022, the startup disclosed achieving 1 million daily transactions while observing a 25 per cent month-on-month growth in fundamental banking services such as cash withdrawal and deposit, micro ATMs, utility payments, point of sale (POS) services, loans, and insurance.
Simultaneously, RapiPay encountered a notable 1.3-fold increase in total expenses, rising to Rs 538 crore in FY23 from Rs 406.9 crore in the preceding fiscal year.
Among the total expenses, service and commission charges stood out as the largest contributor during the stated period. These charges escalated to Rs 360.8 crore in FY23 from Rs 322.2 crore in the previous year.
On the other hand, RapiPay witnessed a substantial surge of 2.7 times in employee benefit expenses, reaching Rs 114.2 crore in the fiscal year under review compared to Rs 42.4 crore in FY22.
While the startup disbursed Rs 62.4 crore as salaries and wages in FY23, its total expenditure on employee share-based payments amounted to Rs 48.1 crore during the year. In contrast, it spent INR 8 crore on employee stock ownership plans (ESOPs) in FY22.
RapiPay's spending on depreciation, depletion, and amortisation also grew to Rs 12.8 crore in FY23 from Rs 6.4 crore in the preceding year.
With the rising number of smartphone users and increased internet accessibility, the digital payments landscape has undergone rapid growth in recent years, leading to the emergence of numerous fintech startups.
As of Q2 2023, India boasted a total of over 4,200 active fintech startups across various sectors, including lending technology, payments, and neobanking.
According to Inc42's analysis, the country's fintech market is projected to reach a size of USD 2.1 trillion by 2030, exhibiting a compound annual growth rate (CAGR) of 18 per cent between 2022 and 2030.
