Saturday, November 23, 2024
No menu items!
HomeStartup StoriesSuccess StoriesMyGate Hits Rs 110 Crore Revenue in FY24, Reports 82% Drop in...

MyGate Hits Rs 110 Crore Revenue in FY24, Reports 82% Drop in Losses

- Advertisement -

Community management app MyGate has reported substantial growth in FY24, with a 35% year-on-year increase in operating revenue and a significant 82% reduction in losses.

The company’s operating income rose to Rs 96.2 crore, up from Rs 71.1 crore in FY23, according to filings with the RoC. The majority of MyGate’s income came from brand advertising, supplemented by subscriptions to its SaaS product. Additionally, Rs 12.9 crore in other income pushed total revenue to Rs 109.1 crore for FY24.

MyGate’s app, which facilitates streamlined community management and security functions, allows residents to control visitor access, connect with neighbors, monitor domestic help, and manage maintenance payments. In September 2024, the app expanded with the addition of smart locks, moving towards an integrated platform that combines consumer devices for enhanced security and convenience.

On the expense front, MyGate saw a 12.8% reduction in total operating expenses, which fell to Rs 129.5 crore from Rs 148.5 crore in FY23. Employee benefits experienced a notable 16.5% reduction, totaling Rs 66.4 crore, while material costs decreased by 27.3% to Rs 1.6 crore. Other expenses also saw a decrease, ending at Rs 61.5 crore compared to Rs 66.7 crore the previous year. This concerted cost management enabled MyGate to reduce its net loss by 82.4%, bringing it down to Rs 39.8 crore from the previous year’s Rs 226.4 crore.

Despite achieving the Rs 100 crore revenue milestone without additional funding in FY24, MyGate previously secured $56 million in Series B funding in 2019, followed by a $12 million investment from Urban Company and Acko in 2022.

Over the last three years, MyGate’s revenue has grown from Rs 8 crore in FY21 to Rs 109 crore in FY24, largely due to a strategic shift from product distribution to revenue-generating initiatives, according to CEO Abhishek Kumar. With plans for continued growth, MyGate anticipates hitting Rs 160 crore in revenue for FY25, driven by increased subscription revenues, strong brand engagement, and its foray into smart home devices.

The company also introduced an ESOP buyback for over 50 employees and announced Kumar’s promotion to CEO. As MyGate continues to pursue profitability, it faces the challenge of appealing to value-conscious Indian consumers while evolving its offerings. The recent venture into smart home security devices like smart locks aligns well with its community-focused security services, positioning MyGate at the forefront of the modern security market.

RELATED ARTICLES

Most Popular

Recent Comments