Mswipe reports Rs 277 Cr revenue and Rs 46 Cr loss in FY24

Mswipe witnessed a flat operating revenue during the fiscal year ending March 2024. However, the Alpha Wave-backed company managed to reduce its losses slightly during the same period.

Mswipe’s operating revenue saw a marginal growth of 1%, increasing to Rs 276.9 crore in FY24 from Rs 274.4 crore in FY23, according to its consolidated financial statement filed with the Registrar of Companies.

The Mumbai-based firm is a B2B payment service provider offering POS solutions including cards, wallets, mobile payment apps, bank apps, contactless payments, and QR code payments.

Transaction processing fees remained the largest revenue source for Mswipe which accounted for 63.09% of total operating revenue. This income grew 7.6% to Rs 174.7 crore in the last fiscal year. Support service fees grew by 4% to Rs 70.1 crore, while income from signup fees declined significantly by 44.4% to Rs 5 crore. 

Overall, the company’s total income, which includes non-operating revenue, rose by 1.39% to Rs 282.2 crore in FY24.

On the expense front, IT expenses, the largest cost component, increased by 5.2% to Rs 164.2 crore, representing 50.16% of total expenses. Employee benefit costs decreased slightly by 2.2% to Rs 77.3 crore. Depreciation expenses rose by 7.1% to Rs 34.5 crore, while other expenses added another Rs 51.3 crore. 

In the end, Mswipe managed to bring total expenses down marginally by 0.3% to Rs 327.3 crore for the fiscal year ending March 2024.

Mswipe reduced its net losses by 5.7%, bringing them down to Rs 46.2 crore in FY24. The company recorded a Return on Capital Employed (ROCE) of -16.94% and an EBITDA margin of -2.09%. On a unit basis, Mswipe spent Rs 1.18 to earn a rupee of operating revenue in FY24. As of March 2024, the firm reported Rs 262 crore in current assets, including Rs 157 crore in cash and bank balance.

To date, the startup has raised over $125 million (more than Rs 1,000 crore) from several marquee investors, including Matrix Partners, B Capital, DSG Consumer Partners, Epiq Capital, UC-RNT, and Ola.

In February, the Mumbai-based company received a payment aggregator (PA) license from the Reserve Bank of India (RBI) which enables Mswipe to offer full-stack payments to businesses. 

Mswipe seems to be following a trend of B2B firms in the fintech space focused on cutting losses over growth, in a bid to find a better model. In an increasingly competitive market with fast changing technology and cost dynamics, payment service providers are probably  in the toughest corner. 2025 should be the year of reckoning for many.