I often wonder about the new economy, new kinds of businesses, massive funding rounds for some of them and valuations. Infact, we all do. Are we missing something? How did these young companies become the world’s biggest companies so soon? Is this temporary?

I am an advocate for businesses that are profitable at the net level (not just with profitable unit economics). I believe they are an asset to the society as they generate an economic surplus, they are sustainable, and they help in creating economic balance by pricing output appropriately.

However, we can’t ignore the new businesses that have cropped up, who scale with funding, have huge valuations and are running in massive losses. Many people wonder if it’s a bubble economy or how it works?

Here is why I think, we need them and why do they operate this way – There is a niche of businesses for whom scaling/growing is more important than sustaining in their initial phase. Their moat is their scale. Example – all the social platforms like Facebook, Twitter, Instagram, LinkedIn. For these companies, the scale and the need for everyone to be on the platform are quintessential to creating value for them and their users. Similarly, for companies like Uber and Ola, it is important that they achieve scale before they focus on sustainability. The scale is essential for them to operate effectively. Cab drivers at Uber and Ola, benefit from a continuous stream of passengers and that would happen only when a lot of users are on the platform. This creates an incentive for drivers to sign up on Uber and Ola, and thus creating easy availability for users to find cabs nearby when needed.

If these businesses will focus on sustainability early on, without growing, then these businesses will lose the benefit of scale and will not create value for anyone – themselves, drivers or passengers. Therefore, they are required to spend significantly on acquiring customers first. Hence, huge losses in the beginning. Hence, the need for funding. As more people sign up on the platform, their valuation increases. Because that is their moat! Hence, investors are ready to give more funds to them to get more users.

However, this must end when the company has gained scale. There is no justification for a business to keep producing massive losses even when they have gained monopolistic status with their scale.

Besides, this doesn’t mean that all the businesses that get funded fall in the above category. For example, I have always believed that co-working spaces shouldn’t be allowed to operate at losses at the net level. Every single unit of these co-work offices should be profitable because the scale is not going to help here. Similarly, hotel chains like Oyo should also focus on being sustainable as the scale is not going to change their economics. When businesses whose scale doesn’t change their economics, raise massive funds, become huge and still lose money, then I think that’s an example of a bubble or investor misjudgment. I am not saying that they should not raise funds to scale, but that, they should have a focus on sustainable operations.

Many businessmen also ask this question. Should you focus on profits or valuation? Should you try to raise funds? In my opinion, it again depends on the nature of your business. Would growing change your business’ economics? If yes, sure. I would suggest starting with having a couple of conversations with investors. Get their opinion. If not, then grow nevertheless, but keeping the focus on profits would help :)

Carzonrent, which owns and operates radio taxi service Easy Cabs, has reported revenue of INR 263 crores in FY 14-15. Easy Cabs which operates in Delhi, Bangalore, Hyderabad and Mumbai, contributed 19% to the company’s revenue. Interestingly, the company made INR 175 crores from renting cars alone.

Financial Performance of Carzonrent

The company reported revenue of INR 263 crores in FY 14-15, a decline of 11% over the previous year’s INR 295 crores. This decline is however, due to the company selling off its Operating Lease segment for INR 80 crores. This also resulted in the company’s profits jumping from INR 6 crores in FY14 to INR 58 crores in FY15.

67% of the revenue came from the car rental services and 19% from taxi services. Following is a break-up of the revenue from operations:

The expenses for the company stood at INR 271 crores, which mainly consisted of the ‘Vehicle running expenses’ at INR 117 crores and employee expenses at INR 27 crores.

About Carzonrent

Carzonrent operates car rental, self-drive (“Myles”) and radio taxi (“Easy Cabs”) services across India. Starting out in 2000, it is among the oldest players and the market leaders in the segment. The company started with car leasing and entered into taxi segment with Easy Cabs in 2006 and self-driven segment in 2014 with Myles. It has its own dedicated fleet of 6500 cars to provide the services. It has raised INR 55 crores from Sequoia (in 2006) and BTS India (in 2011).

Other players in the car rental segment include Zoomcar, JustRide, Savaari among other smaller players and the unorganized operators as well. In the taxi segment it faces stiff competition from the heavily funded players like Ola, Uber and Meru Cabs for a share of the INR 50,000 crore industry.

What distinguishes Carzonrent from its peers is its strengths in terms of corporate and retail customer base, airport presence, partnerships with airlines and hotels, chauffeur drive and self-drive services, own dedicated fleet of cars, visible and recognized brands and  innovative technology platforms.

The ground transportation industry has been attracting big players with heavily-funded pockets. Carzonrent has bet big on its self-drive/ car sharing service “Myles”, and plans to expand the operations to 100 cities across India with a fleet of 5000 cars. It also acquired Bangalore based ride sharing startup Ridingo in April 2015.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Yatra.com, one of India’s leading Online Travel Agencies, reported a 40% rise in its revenue figures in FY 14-15. Its revenue stood at INR 263 crores.

*since October, 2010.

About Yatra.com

Yatra.com is owned and operated by Yatra Online Private Limited. Founded in 2006, it is an online consolidator of travel products including flights, hotel, trains, buses and cruises as well as holiday and trade fair packages. The company claims to have more than 50,176 hotels in India and over 500,000 hotels around the world. It also boasts of doing 20,000 domestic tickets and 7500 hotels and holiday packages a day. Yatra.com provides its services through website, mobile WAP site and mobile applications, 24×7 multi-lingual call centre, a countrywide network of Holiday Lounges and Yatra Travel Express stores. Yatra.com competes aggressively with MakeMyTrip, GoIbibo, Cleartrip, Expedia, Musafir.com in the OTA industry.

Financial Performance of Yatra.com

Yatra.com reported revenue of INR 263 crores against a loss of INR 67 crores in FY 14-15. The revenue and loss figures for the previous fiscal were INR 190 crores and INR 40 crores, respectively. This is a 67% increase in the loss figure over the previous fiscal and the company is yet to break even.

In comparison, its competitors Cleartrip and Ibibo had reported a revenue of INR 192 crores and INR 234 crores in the same period.

The Company provides travel products and services to leisure and corporate travelers in India and abroad. Other revenue primarily consists of advertising revenue, income from sale of rail and bus tickets and fees for facilitating website access to a travel insurance company. Two-thirds of the revenue comes from the flight booking services. The hotel and packages saw a 64% increase over the previous fiscal. Following is a break-up of the revenue in FY 14-15:

The biggest expense for the company was the advertising and promotional expense which stood at INR 140 crores (40% of the total expenses). The following is a break-up of the major expenses:

Funding

The company has raised funding of INR 520 crores since October 2010. The list of investors includes Reliance, Asia Consolidated DMC, IL&FS among others. Out of this, INR 122 crores were raised in FY 15-16.

Benchmarking

Here is how Yatra fares in comparison to the major players in OTA industry. The FY 14-15 figures for MakeMyTrip are currently unavailable but it was the market leader in FY 13-14 with a revenue of INR 1340 crores.

Among its key acquisitions are ticket consolidator Travel Services International (TSI) in October 2010, global distribution system (GDS) provider MagicRooms.in, and Indian events and entertainment portal BuzzInTown.com in July 2012. Recently, it acqui-hired Travel-logs, in January this year, to boost tours within city. It also acquired 100% stake in Travelguru.com in 2012.

Recently the company launched TG Rooms to take on the likes of OYO and Zo rooms in the budget rooms segment, and claims to have the largest inventory of hotels and accommodations in India with over 40,000 stay options across over 1100 cities.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Myntra, which got acquired by Flipkart in May, 2014 has reported revenue figures of INR 773 crores against a loss of INR 740 crores for FY 14-15. Myntra is one of the leading fashion e-commerce portal in India and competes with the likes of Jabong, Fashion and You among others.

Financial Performance

Myntra is owned and operated by Myntra Designs Private Limited. The company reported a revenue growth of 78%, its revenue stood at INR 773 crores in FY 14-15 vis-à-vis INR 433 crores in FY 13-14.

The losses surged more than four folds from INR 173 crores in FY 13-14 to INR 740 crores in FY 14-15. In comparison, Jabong had reported a revenue of INR 1083 crores with a loss of INR 44 crores in the same period.

Myntra operates on an inventory-led model, and recognizes its revenue from the sale of goods through the website and the mobile app. It also realizes revenue from the technology solution services from operating the internet portal in the form of brand name license fees, technology license fees, domain name fees and service fees. Its revenue from operations was 96% of the total revenue.

The major expenses for the company as a percentage of the total expenses were purchase of stock-in-trade at 72%, Employee expense at 14% and advertising promotional expenses at 11%.

Interestingly, the employee expenses went up by 401% in the period. Following chart gives a break-up of the major expenses:

Funding

The company has raised a total funding of INR 1831 crores. However, the major funding came post acquisition when the company saw major investments from Flipkart of INR 1160 crores during June 2014 to June 2015.

About Myntra

Myntra was founded by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena in 2007. It is an online e-commerce platform for fashion and lifestyle products including clothes, apparels and footwear and operates through an app-only model. Myntra, which specializes in fashion e-commerce, competes directly with Jabong, Yepme, Fashion and You and Limeroad in its category and indirectly with other E-commerce giants like Snapdeal and Amazon.

Myntra initially operated on a B2B model for on-demand personalization of gift items. In 2011 they shifted their focus on fashion and lifestyle products. In 2014, Myntra got acquired by Flipkart to keep players like Amazon and Snapdeal at bay. Founder and CEO, Mukesh Bansal, now heads Flipkart’s commerce platform and the ads business.

Myntra went app-only in May 2015but it seems that they have seen a decline in sales due to that. They recently announced that they clocked an annualized Gross Merchandise Value (GMV) of USD 800 million in January 2016 and are focusing on attaining positive gross profit and touching USD 1 Billion gross profit this year.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Snapdeal, the second largest player in the Indian e-commerce industry, has reported a revenue of INR 938 crores with a loss of INR 1,319 crores in FY 14-15. Snapdeal is fighting it out in the Indian e-commerce sector with home grown Flipkart, which is currently the leader, and US e-com giant Amazon who entered the India market in 2013.

FINANCIAL PERFORMANCE
Jasper Infotech Private Limited, which owns and operates Snapdeal, reported its revenue at INR 938 crores out of which INR 766 crores is the revenue from operations. This is a 450% growth in the revenue from INR 168 crores (INR 154 crores from operations) last fiscal. Loss reported against this revenue is a staggering INR 1319 crores which is roughly five times than that in the previous fiscal.

Compared to this, one of their competitors Shopclues, which recently entered the coveted Unicorn club, had reported a revenue of INR 79 crores with a loss of INR 101 crores in the same period.

As one would guess, their biggest expense in the fiscal was on Advertising and Promotional expenses at INR 1060 crores. Out of this, INR 426 crores was ‘Advertising and Publicity Expense’, while the remaining INR 633 crores was ‘Business Promotion Expenses’. ‘Business Promotion Expenses’ could possibly pertain to various discount schemes offered on Snapdeal. Their Employee Benefit expense grew four fold from INR 87 crores to INR 367 crores. Here is a breakup of their expenses in the previous two fiscals:

Growth Story
Snapdeal was founded by Kunal Bahl and Rohit Bansal in 2010 as a daily deals site but expanded to become an online marketplace in 2011. According to their website, they currently have more than 12 million products listed from 150,000 sellers and they deliver to more than 5000 cities in India.

Snapdeal holds a market share of 32% of the Indian e-commerce industry compared to two of its biggest rivals Flipkart, which holds 44% and Amazon, which accounts for 15% of the total market.

In April of 2015, Snapdeal acquired Freecharge, a digital payments company to bolster their presence in Mobile payments space. The deal was rumoured to be in the region of $450 million through a mix of cash and equity.

FUNDING
Jasper has raised a total funding of INR 10,492 crores so far, according the documents filed with the Registrar of Companies. Out of this, INR 3,187 crores has come in after 31^st March, 2015 and INR 6,181 crores came in FY 14-15. This two figures account for roughly 90% of their total funding received so far. Snapdeal counts Chinese eCommerce major Alibaba, OEM phone manufacturer Foxconn and Japanese investment bank SoftBank among its largest investors.

Recent developments

In order to increase their topline, Snapdeal has been dabbling in various offbeat categories with mixed success. Last year, Snapdeal became the first eCommerce site to start selling Luxury Yachts online. With the success in Automobiles category, they launched Snapdeal Motors, where visitors could book vehicles online from auto majors like Hero Motocorp, Mahindra and Mahindra, Suzuki Motorcycles and Datsun.

Snapdeal also had some good success in Home buying space. Snapdeal had held the Diwali Home Buying fest from November 3 to November 9 last year and approximately 10,000 customers showed interest and registered on the website to buy homes online.

And, it’s not just Homes and Autos – Snapdeal has been successful in selling Maggi packets as well (after the ban had lifted) – They reportedly sold over 7,20,000 packs of Maggi Noodles in just 5 minutes!

Snapdeal has been experimenting a lot over the last 12 to 18 months in their quest to become India’s biggest eCommerce portal.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Ibibo Group which owns and operates Goibibo has reported its latest financials for FY 14-15 with the Registrar of Companies. Its revenue has doubled over the previous fiscal.

ibibo Group Private Limited mainly operates three businesses – Goibibo, Redbus and Ryde. Goibibo offers online booking for flights, hotels, holidays, and buses. It competes in the online travel aggregator segment with MakeMyTrip, Yatra, Cleartrip, and other players. Redbus is Inda’s largest online bus ticketing platform and the company claims to operate on over 67,000 routes and has 1800 bus operators on its platform. Ryde is a ride sharing mobile application. The company is a fully owned subsidiary of Naspers South Africa.

Financial Performance of Ibibo Group

The company reported revenue of INR 234 crores against a loss of INR 377 crores in FY 14-15. The revenue grew by 105% over the previous fiscal while the losses surged by 222%. In comparison, its competitor Cleartrip had reported a revenue from operations of INR 192 crores with a loss of INR 29 crores in the same period.

The company recognizes its revenue from the commission income on travel products and services, commission on e-commerce transactions, advertisement income and support fees from related parties. Here is a break-up of the revenue from operations:

As per the documents filed with the Registrar of Companies, the Gross revenue from services was INR 295 crores while the brokerage discounts rebate accounted for INR 71 crores (~24% of the gross revenue).

The major expense for the company was the Advertising promotional expense which stood at INR 247 crores (40% of the expenses). The company also reported Amortization expense of INR 118 crores, which grew from 23 lacs in FY 13-14, on account of the acquisition of Redbus in 2013.

Growth Story of Ibibo Group

Naspers entered India in 2006 and appointed Ashish Kashyap of Google as its CEO. The company has since gone on to fully or partly own companies and brands in India like Ibibo Group, Flipkart, Goibibo, OLX, PayU Money, Redbus, Myntra, Travel Boutique among others. Ibibo Group was formed in March 2012 but commenced its commercial operations from FY 13-14. The company operated goibibo.com for travel booking and in 2013 acquired Redbus. They also acquired a minority stake in cloud based hotels solution provider Djubo in August 2015. Currently Goibibo is among the top 3 Online Travel Agency while Redbus is the biggest bus ticket booking platform in India.

The company has received a total funding of INR 1216 crore. These funds were infused by the holding company MIH India Ecommerce Pte, Mauritius. The latest round of funding was in November 2015 for INR 130 crores.

The group has been on a rampant expansion path. Recently it entered into the standardized budget rooms category by launching GoStays in Delhi, Gurgaon, Bangalore and Hyderabad in September 2015. It also launched Ryde a ride sharing app. Redbus has extended its operations to Singapore and Malaysia.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Big Tree Entertainment Private Limited, which owns and operates bookmyshow.com, has reported its latest financials. The company’s revenue crossed INR 100 crore mark in FY 14-15 with a growth of 57% over the past fiscal’s revenue.

*since March 2007.

The company operates online movie and event ticketing brand BookMyShow, media measurement and research company Rentrak, cinema software Vista along with call centre services for booking. It has tie-ups with some of the biggest players in cinema industry including Big Cinemas, Wave Cinemas, Fun Cinemas, PVR among others.

Financial Performance

The company has reported revenue of INR 132 crores against a loss of INR 13.5 crores. This is 57% growth in revenue over the previous fiscal. The following chart captures their financial performance over the last 10 years. The company has seen a steep 10X revenue growth in the past 5 years.

Revenue Recognition

The company has multiple streams of revenue generation. These include convenience fee on online sale of tickets, revenue from concerts and events, revenue from sale and maintenance of software, from sale of advertisement space, revenue from the call centre business. The online ticket sales saw a growth of 94% over the previous fiscal from INR 46 crores to INR 88 crores. However the commission income from concerts and events saw a 20% dip, down from INR 23 crores to INR 18 crores. The following chart elaborates the revenue source for Big Tree:

The major expenses for the company were the Advertising promotional expense at INR 26 crores and Employee expense at INR 17 crores.

Growth Story

Big Tree Entertainment was founded in 1999. From 2002 to 2007 the company prepared the infrastructure to launch an online ticket booking system across the multiplexes. Once that was achieved, the company launched BookMyShow in 2007. Currently it contributes around 80% to the company’s revenue. BookMyShow currently operates in 4 countries outside India – Bangladesh, New Zealand, UAE and Indonesia. According to Forbes India, it has a market share of about 85 to 90% of the online entertainment-ticketing market in India. Apart from movie tickets the company offers tickets to concerts, plays and sporting and others events including conferences, workshops, music and travel. BookMyShow’s competitors include Kyazoonga, Ticketgenie among others.

Funding

The company has raised funds of INR145 crores since March 2007. The latest round was of INR 130 crores. The key investors in the company are SAIF Partners, Accel and Network 18.

Forbes India features BookMyShow among the most successful mobile ecommerce app in the country and contributes about 60% to the transactions. The company has been diversifying from the ticketing model to include other avenues including movie and event reviews, spectator management, food management system at events, etc.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

The home furnishing industry in India is a great opportunity for companies to capture. Its market in India ispegged to be around USD 20 billion. Moreover, a large number of unorganized players exist who are not able to cater effectively to the demand due to logistics and infrastructure issues. This led to a number of start-ups in this space, backed by big VCs. One of them is the Goldman Sachs backed Pepperfry.

Pepperfry is a furniture and home décor marketplace, owned and operated by TrendSutra Platform Services Private Limited. This company is a wholly owned subsidiary of Trendsutra Cyprus Ltd., incorporated in Cyprus. It operates on a marketplace model and competes with Urban Ladder and Livspace in the furniture e-retail segment in India. Another key player in the segment is FabFurnish which operates on an inventory-led asset-heavy model.

Financial performance

The company reported a revenue of INR 25.3 crores in FY 14-15 against a loss of INR 88 crores. This is a revenue growth of more than 200% from INR 7.5 Crore in the previous fiscal. Losses nearly tripled from INR 30 crores in the previous fiscal.

In comparison, it close competitor Urban Ladder had reported a revenue of INR 19 crores and a loss of INR 58 crores in the same period.

In FY 14-15, Pepperfry‘s expense on ‘Advertisement and Business Promotional Expense’  shot up five times of that in FY 13-14. It was the largest head in their total expenses, accounting for about 60% of it. Employee benefit expenses stood at INR 15 crores, 13% of total and 1.5 times of that in the previous fiscal.

Pepperfry was founded by Ashish Shah and Ambareesh Murty (both former eBay employees), in July 2011.

According to their website, it covers more than 1000 cities in India, has more than 2 million registered users and more than 1000 merchants on its platform. They claim to have fulfilled more than a million orders. Pepperfry currently leads the online furniture market and sources most of its products from Jodhpur.

Pepperfry Funding

All of their funding has been routed through their holding company TrendSutra Cyprus ltd. Total funds of INR 433 crores have been infused into the company with latest being INR 179 crores in October 2015. In comparison, Urban Ladder has raised funds of INR 460 crores so far.

These companies are incurring huge Advertising and Promotion expenses, Pepperfry and Urban Ladder spent INR 68 crores and INR 40 crores, respectively on the same. For the time being it might be justified as the furniture e-tail market is in the early stage of growth and is yet to mature. They also offer heavy discounts to attract customers who have become accustomed to the offline unorganized retail sector. How long will this trend continue and when will these companies become profitable, if they do at all, is something that we will have to wait and watch out for.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Swiggy, an online food-ordering and delivery start-up, is owned and operated by Bundl Technologies Private Limited. They have reported their results for the FY 14-15 and they are not much different from other online food ordering startups.

Financial Performance

The company reported revenue of INR 11.6 lacs against a loss of INR 2.1 crores. The revenue from operations stood at INR 7 lacs. The revenue comprises the delivery fees charged to restaurants and ‘e-commerce revenue’. The biggest expense for the company was the employee expense at INR 1.3 crores.

Swiggy mainly competes with Foodpanda, TinyOwl, Faaso’s and now Zomato, when it entered the food delivery segment last year. Following is a comparison of FY 14-15 revenue and PAT of ley players in food-tech. Zomato has not been included since it has primarily been a restaurant search and discovery platform and thus is not exactly comparable with the others.

Story so far

Swiggy was founded by Sriharsha Majety, Rahul Jaimini and Nandan Reddy in December, 2013 in Bengaluru and became operational in FY 14-15. It enlists restaurants from nearby location to the customers who can then select and place order through its app or the website. It has dedicated delivery personnel to pick up orders from restaurants and deliver them to the customers. Swiggy now has its operations in 8 cities across India.

Funding

Swiggy secured its first funding from SAIF Partners in January 2015 followed by a funding round of INR 100 crores in June. The company has raised a total funding of INR 113.6 crores so far, from SAIF Partners, Accel, Norwest Venture and Apoletto Asia. Here is a snapshot of total funding raised by Swiggy and its competitors in foodtech.

With most of the players at almost similar stages, there is no clear leader so far in the online food ordering space. Although Zomato is way ahead of anyone in the restaurant search and discovery space, they have only just begun their food ordering operations. A few of the players such as Dazo, Spponjoy, etc. have already shut shop and there could be more such cases or industry consolidation. With heavy funding, this sector has already garnered everybody’s attention and it would be interesting to see how the space emerges.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Practo is a healthcare start-up, owned and operated by Practo Technologies Private Limited, which offers patients and doctors a unique platform to interact. It enables patients to search for doctors and book appointments and offers a practice management tool to the doctors. With over 15 lac monthly users and a global presence, Practo has disrupted the healthcare segment by offering an efficient way for doctors and patients to connect.

Financial Performance

Practo reported a 13X jump in its revenue in FY 14-15. Revenue stood at INR 29.7 crores, against a loss of INR 12.9 crores, but there is more to it.

Revenue

Practo Ray is the main offering by Practo. It is a Practice Management tool for the doctors that provides them access to a SaaS tool, enables anytime access to data, e-prescription, reports, analytics and more. The company obtains its revenue from the subscription that it offers to the doctors. This revenue amounted to INR 6.1 crores in FY 14-15 (INR 2.2 crores in FY 13-14).

Out of a total reported ‘Revenue from operations’ of INR 25.4 crores, INR 19.3 crores (~76%) has been reported as ‘Software development and support’ and ‘customer support and marketing services’ that it rendered to its holding company, Practo Pte. Ltd., incorporated in Singapore in November 2012. Another INR 3.9 crores (13% of total revenue) has been reported, under the ‘Other Income’ head, as the ‘sale of Intellectual Properties’ (including its products Practo Ray, Hello, Search, Tablet, website, domain name, all the codes and the Trademarks held) to Practo Pte. Ltd. These three heads combined, have led to a seemingly exaggerated revenue figure in FY 14-15. Here is a breakup of their revenue in the past two years:

In lieu of this understanding between Practo India and Practo Pte, the former will now be paying subscription charges to the latter. As mentioned in the notes to the financial statement, “On 27 August 2014, the Company has entered into an agreement with its Holding Company for the use of its Intellectual Property Rights (IPR) by paying subscription charges which is based on a percentage of revenue generated by the Company. However, the Holding Company has waived the subscription charges for the period from 27 August 2015 till March 2015”. Here, Practo India is being referred to as ‘The Company’ and Practo Pte is being referred to as ‘Holding Company and there seems to be a typo in the last sentence where August 2014 is written as August 2015.

Expenses

Apart from the Employee expenses that stood at 62% of the total expenses, the major expense was Advertising promotional expense at INR 4.4 crore. Notably, it had spent only INR 83 thousand on advertising in the previous fiscal. Here is a breakup of their expenses:

Funding and Growth

Back in 2008 when Shashank ND and Abhinav Lal founded Practo, they started its operations in Bengaluru. Over a span of 7 years, Practo has entered 15 countries across the globe. Recently it started operations in Kula Lumpur in October last year. The company claims to have more than 1.3 lac doctors on its platforms and more than 4 million monthly searches. They went on an acquisition spree this year, making four acquisitions in a span of five months – Fitho Wellness (fitness and preventive healthcare), Genii (a tech products development firm), Insta Health (hospital information management solution provider) and Qikwell (doctor appointment booking platform).

The company has raised a total funding of INR 298 crores so far. Out of this, about INR 11 crores came from Sequoia Capital during March 2011 to October 2012. Rest of the amount – INR 286.4 crores – has been routed through their holding company Practo Pte. Last fund of INR 164 crores was infused in September 2015.

In a crowded space of healthcare platforms, where a few like HelpingDoc have shut down and others like Fitho and Quikwell have gotten acquired, Practo competes closely with Lybrate. So far, it seems to be emerging as a clear leader in this space. In a latest bid, it partnered with Uber, to enable patients to book a cab through Practo app. Recently, it has also entered the beauty and wellness segment by bringing spas, salons and fitness centres on its platform.

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This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

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