Quikr, the online marketplace and classified platform, has reported a slight increase in its revenue from operations and a significant decrease in its losses for the fiscal year ending March 2023, according to its consolidated financial statements.
Revenue breakdown
Quikr’s revenue from operations rose 4.7% to Rs 51.36 crore in FY23, compared to Rs 49.07 crore in FY22. The company made most of its revenue from lead referral fees, followed by advertising, which together accounted for around 90% of the revenue in FY23. The remaining amount was generated from commissions, management consultancy services, business support, and other operating activities.
The company also earned Rs 2 crore from interest and gains on other financial assets (non-operating income). Considering this, the total income of the company stood at Rs 53.38 crore in FY23.
Expense breakdown
The largest cost expense for the company was employee benefit, which shrank 17% to Rs 41.5 crore in FY23, from Rs 50 crore in FY22. IT costs, including web hosting and payment gateway, also dwindled 43% to Rs 3.5 crore in FY23, from Rs 6.13 crore in FY22. The company also cut down its legal, promotional, and other expenses, as a result of which, the overall expenditure reduced 27% to Rs 61.36 crore in FY23, from Rs 84 crore in FY22.
Bottom line improvement
The cost-cutting measures taken by the company during the year reflected in its bottom line, which improved significantly. Quikr’s losses declined 62% to Rs 7.98 crore in FY23, compared to Rs 20.98 crore in FY22. Additionally, the company’s outstanding losses stood at Rs 3,077 crore at the end of FY23.
The company also turned positive in terms of operating cash flows, which amounted to Rs 2.57 crore in FY23, against Rs 29.23 crore (negative) in FY22. The EBITDA margin and ROCE of the company strengthened to -3.52% and -3.87%, respectively, in FY23. On a unit level, Quikr spent Rs 1.19 to earn a rupee of operating revenue in FY23.
Future outlook
Quikr, which was once valued at over $1 billion, experienced a drop in scale from Rs 191 crore in FY19 to Rs 110 crore in FY20. This declining trend continued until FY22. However, the Bengaluru-based firm has recently shown signs of stability and resilience with its revenue growing for the first time in the last three years in FY23.
The company, which operates in various segments such as jobs, real estate, automobiles, services, and education, is also looking to expand its offerings and reach in the online marketplace and classified space. Quikr is also exploring opportunities in the international markets, especially in Southeast Asia.
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