BillDesk records 9.6% jump in FY23 revenue, profit down 5.1% at Rs 142 crore

Currently payment aggregators, who see digital payments such as QR scanning, POS machine, and net banking, are exempt from GST on transactions below Rs 2,000

Fintech firm BillDesk reported a net profit of Rs 142 crore for the financial year 2022-23, down by 5.1 percent from Rs 150 crore in the year-ago period.

The company's revenue from operations grew 9.6 percent to Rs 2,678 crore from Rs 2,443 crore in the same period last year, regulatory filings sourced from startup data platform TheKredible showed.

Mumbai-based BillDesk provides payment gateway services to businesses and charges fees for processing and settlement of these payments, which contribute more than 70 percent of the total operating revenue. The remaining amount came from loyalty programmes for clients and the sale of products (PINS and e-top-up subscriptions).

Around Rs 87.15 crore came via interest and gain on financial assets, which took the total revenue of the firm to Rs 2,765 crore in FY23.

Meanwhile, its expenses rose marginally by 11.6 percent to Rs 2561 crore, affecting the company's operating cash flows, which turned negative to Rs -121.63 crore in FY23 from Rs 39.83 crore previously.

The majority of these expenses came from technical services, which includes bank fees and service charges, followed by employee cost that went up by 35.4 percent to Rs 245 crore.

The B2B fintech firm has been losing momentum over the past few years since the call-off of its mega deal with Prosus-backed PayU Payments.

Prosus, the investment arm of South African multinational Naspers, had terminated its $4.7 billion acquisition of BillDesk in October 2022.

While the revenue figures remain competitive as compared to its peers like Razorpay and CCAvenue, the scale has been muted while profit continues to fall from Rs 245.5 crore in FY21.

While Razorpay clocked a 54 percent growth in its operating revenues at Rs 2,279 crore, Infibeam’s CC Avenue recorded a 51.6 percent jump at Rs 1962 crore in FY23.

Pine Labs on the other hand reported a 37.3 percent operating revenue growth at Rs 1280.5 crore.