Perfios, an Indian fintech SaaS startup, has turned its fortunes around by reporting a consolidated net profit of ₹7.8 crore for the fiscal year 2023 (FY23), a significant improvement from the net loss of ₹16.8 crore it experienced in the previous fiscal year. The company's operating revenue saw a substantial increase, nearly tripling to ₹406.8 crore in FY23, driven by robust growth in its domestic business and service income.
The Bangalore-based firm, founded in 2008 by VR Govindarajan and Debasish Chakraborty, attributes its impressive revenue growth to a 211% year-over-year (YoY) increase in its India operations, which brought in ₹382 crore. Service income also saw an exponential rise, jumping over 28 times YoY to ₹166.5 crore. These figures underscore Perfios' expanding footprint in the financial technology sector, where it provides services such as customer onboarding, underwriting, and efficient monitoring to banking, financial services, and insurance clients across 18 countries.
Perfios processes an astounding 1.7 billion transactions annually and manages assets under management (AUM) totaling $36 billion. The company's software support for loan processing alone brought in approximately ₹198.5 crore, marking a 90% YoY increase. However, this rapid expansion came at a cost, with total expenses more than doubling to ₹386.4 crore in FY23. Employee costs were the largest expense category, accounting for over 55% of the total spending. Legal professional charges also surged by 80% to ₹41.1 crore.
Despite these higher expenses, Perfios has maintained operational efficiency and achieved profitability in FY23. This is partly due to strategic moves such as the acquisition of Karza Technologies, which contributed ₹168 crore to revenue and played a key role in the company's profit this fiscal year.
Further bolstering its financial position and future prospects, Perfios recently completed a $229 million Series D funding round led by Kedaara Capital. The company also made headlines with its employee stock ownership plan (ESOP) buyback worth ₹154 crore that created 62 millionaires among its staff.
Looking ahead, Perfios is preparing for an initial public offering (IPO) within the next 18-24 months. As part of its growth strategy and readiness for public markets, the company has strengthened its leadership team by appointing Sumit Nigam as Chief Technology Officer (CTO) and Anu Mathew as Chief Product Officer (CPO).
With over 1,000 financial institutions globally relying on Perfios' services and the handling of 8.2 billion data points annually for faster client decision-making, the company is positioning itself as a significant player in the global fintech landscape.
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