NoBroker’s FY23 Financials: Revenue Surges, but Challenges Persist

Proptech unicorn NoBroker has finally unveiled its FY23 financial results, albeit nine months after the due date. The company experienced remarkable growth in operating scale, with an 86.8% increase in revenue from operations. However, this growth was overshadowed by mounting expenses and losses.

Revenue Growth and Business Model

NoBroker’s revenue soared to Rs 609 crore in FY23, up from Rs 326 crore in FY22. The company’s primary source of revenue remains its subscription plans, which connect property owners directly with tenants, eliminating the need for brokers or agents. Additionally, NoBroker offers ancillary services such as rental agreements, home insurance, and property management.

real estate property

Expense Breakdown

While revenue surged, expenses followed suit. Employee benefits accounted for 36.55% of overall expenditure, totaling Rs 435 crore in FY23. Other overheads, including advertising and payment gateways, added Rs 724 crore to costs. Consequently, total expenses escalated to Rs 1,190 crore in FY23, up from Rs 679 crore in FY22.

Profitability Challenges

Despite robust growth, NoBroker faced profitability challenges. Losses surged by 63.8%, reaching Rs 506 crore in FY23. The company’s return on capital employed (ROCE) and EBITDA margins were recorded at -34% and -69.5%, respectively. On a unit level, it spent Rs 1.95 to earn a unit of operating revenue.

Future Prospects

NoBroker aims to touch the Rs 1,000 crore revenue mark in FY24. However, profitability remains elusive. The company continues to expand its services, but challenges persist. Even the original premise of zero brokerage may face threats due to innovative offerings, such as postpaid plans for landlords seeking tenants.


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