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MSwipe’s revenue grows marginally in FY23, but losses shrink by 45%

MSwipe, one of the leading point-of-sale (POS) and payment solutions providers in India, has reported a marginal growth in its revenue for the financial year 2023, but has also managed to cut its losses by 45%, according to its latest regulatory filings.

Revenue rises by 4%, expenses drop by 25%

According to the filings sourced by Entrackr, MSwipe’s revenue from operations increased by 4% to Rs 248.6 crore in FY23, from Rs 239.2 crore in FY22. The company’s total income, which includes other income such as interest and rent, also grew by 4% to Rs 252.8 crore in FY23, from Rs 243.2 crore in FY22.

However, the company’s total expenses dropped by 25% to Rs 342.8 crore in FY23, from Rs 457.4 crore in FY22. The major expense components for MSwipe were employee benefits, which accounted for Rs 131.7 crore, and depreciation and amortisation, which amounted to Rs 97.7 crore in FY23.

The company also reduced its spending on advertising and promotion by 67% to Rs 9.8 crore in FY23, from Rs 29.5 crore in FY22. Similarly, its expenses on rent, rates and taxes decreased by 54% to Rs 8.8 crore in FY23, from Rs 19.1 crore in FY22.

Losses shrink by 45%, cash flow improves

As a result of lower expenses and higher revenue, MSwipe’s losses before tax shrunk by 45% to Rs 90 crore in FY23, from Rs 164.2 crore in FY22. The company’s losses after tax also reduced by 45% to Rs 90 crore in FY23, from Rs 163.9 crore in FY22.

MSwipe’s revenue grows marginally in FY23, but losses shrink by 45%

Moreover, the company’s cash flow from operating activities improved significantly in FY23, as it generated a positive cash flow of Rs 12.9 crore, compared to a negative cash flow of Rs 137 crore in FY22. The company’s cash and cash equivalents increased by 28% to Rs 36.6 crore as of March 31, 2023, from Rs 28.6 crore as of March 31, 2022.

MSwipe’s performance amid Covid-19 pandemic

MSwipe’s performance in FY23 was affected by the Covid-19 pandemic, which disrupted the offline retail and hospitality sectors, where the company has a large presence. The company’s revenue and expenses declined sharply in the first quarter of FY23, as the nationwide lockdown was imposed to contain the spread of the virus.

However, the company’s revenue and expenses recovered gradually in the subsequent quarters, as the lockdown restrictions were eased and the economic activity resumed. The company also launched new products and services, such as QR code-based payments, online payment gateway, and smart POS devices, to cater to the changing needs of its customers and merchants.

The company also raised $30 million in a Series E round led by Falcon Edge Capital in December 2022, to expand its product portfolio and merchant base. The company claimed to have over 6.75 lakh POS terminals and over 1.1 million merchants on its platform as of December 2022.

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