Customer engagement firm Exotel reported a 6 percent year-on-year increase in operating revenue, reaching Rs 444.49 crore in FY2025, up from Rs 420 crore in the previous financial year. At the same time, the company significantly narrowed its losses by 65 percent, from Rs 108.8 crore in FY2023 to Rs 38.8 crore in FY2025.
"There are multiple factors which have helped us to bring down the losses. We could optimise our supply cost and technology costs. This is the reason why our margins also improved. Secondly, we have also driven operational efficiency across the organisation across the support and service side of our business," said Adarsh Dikshith, CFO of Exotel to Moneycontrol.
Exotel also announced turning EBITDA positive in Q3 and Q4 FY24, with projections of 100% year-on-year EBITDA growth in FY25, it said in a statement.
"In FY22, we did two strategic acquisitions, and the benefits of these acquisitions started setting in from FY24. This is why the year was built on the consolidation process. FY24 is for us the true year of consolidation and we started unlocking the synergies of these acquisitions," Dikshith added.
The firm also partially attributed the growth to entry into high-growth markets, including Saudi Arabia, UAE, and the USA. And Dikshith said that the firm will continue to invest in AI-powered innovations and expand its global footprint.
In January of 2024, Exotel unveiled a suite of advanced Artificial Intelligence (AI) solutions named 'House of AI.' This integration includes Generation AI and Natural Language Processing (NLP) technologies to enhance customer engagement.
"We did undertake strategic initiatives under Gen AI. It hasn't become a major component for our profitability, but I'm sure it will in the days to come from FY25 and onwards," Dikshith added.
Started in 2011, Exotel allows companies to manage customer engagement through an omnichannel contact center, a suite of communication APIs (application programming interfaces), and a conversational artificial intelligence (AI) platform over the cloud.
It offers a suite of customer engagement products across voice, text messages, VoIP (voice over internet protocol) calling, and user authentication, among others.
Exotel in 2022 raised $40 million (Rs 298 crore) in its Series D funding round led by Steadview Capital. With this, the startup said it has raised around $100 million across multiple debt and equity financing rounds over the past 15 months.
Exotel signed up more than 1,300 customers last year including ITC Salaam in Saudi Arabia, Tata Consultancy Services, Bajaj Allianz, City Mall, Krazybee, and Shadowfax. The firm claims to have 7,000 clients globally, and facilitates more than 25 billion annual conversations through its unied platform.
"We have already seeing greenshoots of path to profitability and in Q4 we already have adjusted Ebitda profitability. All the building blocks starting with greenshoots is already there and net profitability will be our next milestone," the company's CFO shared.
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