Mswipe's payment business turns adjusted profitable in FY24, clocks Rs 275 crore revenue

Mswipe’s Total Payment Volume (TPV) jumped 106.8 percent YoY, reaching Rs 50,417 crore in FY24, up from Rs 24,381 crore in FY23 (Representative image)

Mswipe Technologies, a payments solutions provider, said on December 27 it has turned its core payment business cash profitable on the back of reduced operational inefficiencies.

The company’s cash profit grew by 495.6 percent, reaching Rs 4.5 crore, compared to a loss of Rs 1.1 crore in FY23. Revenue from the payments business grew by 6.3 percent, reaching Rs 275.4 crore in FY24, up from Rs 259.2 crore in the previous year.

The company has yet to file its consolidated group numbers for FY24.

Mswipe’s Total Payment Volume (TPV) surged by 106.8 percent year-on-year, reaching Rs 50,417 crore in FY24, up from Rs 24,381 crore in FY23, with a current annualised run rate of $12 billion. This growth was primarily driven by the widespread adoption of its QR soundbox terminal (Boombox) and the expansion of its distribution network, including strategic partnerships with over 40 banks.

The payments business recorded an Adjusted EBITDA (excluding ESOP cost) of Rs 2.5 crore in FY24, bouncing back from a Rs 2.9 crore loss in the previous year.

“We have grown to become a comprehensive payment system solutions provider for SME merchants across 600+ cities in India,” the company said in a statement. Mswipe, which initially focused on offline payments with point of sale (PoS) devices, is now expanding into the online payments space, with its own payment gateway, targeting MSMEs.

Mswipe's product suite includes MPOS and Smart PoS terminals, Soundbox, and Pay by Link. The company's in-house switch for both PoS and UPI payments has streamlined its operations, reducing reliance on third-party providers.

The company also focused on lowering sales and marketing costs, optimising its service and operations expenses, and adopting a subscription-led model, resulting in improved profitability, it said.

As of October 2024, Mswipe reported approximately 4 lakh active terminals. In February 2024, the company was granted a payment aggregator license by the RBI.

Mswipe competes with Razorpay, PayU, Pine Labs, CCAvenues, BharatPe, BillDesk, among others in the offline payments sector.

Backed by investors including Alpha Wave Global, Matrix Partners, B Capital, DSG Consumer Partners, Epiq Capital, and UC-RNT, Mswipe raised $20 million in a February 2024 equity capital round from its existing investors.