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CitiusTech’s Profit Skyrockets 6X to ₹350 Cr in FY24 Despite Revenue Plateau

By
Supriya Biswas
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CitiusTech, a healthcare technology and consulting platform backed by Bain Capital Private Equity, showcased an exceptional leap in profitability during FY24, even as its revenue growth remained modest. The Mumbai-based company recorded a sixfold surge in profit, driven by streamlined expenses, including a notable reduction in consulting charges.

The firm’s revenue edged up by just 1% to ₹3,536 crore in FY24, compared to ₹3,498 crore in FY23, as per its consolidated financial statement filed with the Registrar of Companies. CitiusTech specializes in providing technology solutions, including consulting, engineering, and data-oriented software services, primarily catering to large healthcare organizations and hospitals. Its core software services, which form 98.8% of its operating revenue, grew 2.49% to ₹3,495 crore in FY24. However, revenue from software license sales and maintenance dropped sharply by 53% to ₹38 crore.

Adding to its topline, the company earned ₹15.7 crore from non-operating activities, pushing its total revenue to ₹3,551 crore in FY24.Employee benefits constituted the largest expense for CitiusTech, accounting for 75% of total costs, rising by 4.2% to ₹2,226 crore in FY24. Depreciation expenses climbed 6.2% to ₹136 crore, while consulting charges saw a 7.53% decline, settling at ₹299 crore. Overall, the company’s expenses increased marginally by 3.31% to ₹2,968 crore, compared to ₹2,873 crore in FY23.

This efficient cost management significantly boosted CitiusTech’s profit after tax (PAT), which soared to ₹350.28 crore in FY24 from ₹55.5 crore in FY23. The company achieved a return on capital employed (ROCE) of 37.67% and an EBITDA margin of 20%. On a unit basis, it spent ₹0.84 to earn a rupee during the fiscal year.

Strategic Challenges and Future Goals

Despite the robust bottom-line performance, the company faces challenges in meeting its ambitious revenue targets. CitiusTech had aimed for ₹4,100 crore in revenue by September 2023 and is eyeing the $1 billion mark by FY28. To achieve these milestones, it may explore strategic acquisitions to accelerate growth.

Currently, CitiusTech holds ₹458 crore in cash reserves and ₹1,232 crore in current assets, providing it with a solid foundation for expansion. With Baring Private Equity acquiring the firm for $955 million in 2022, the company may also consider an IPO as a potential growth avenue in the coming years.

Nazara Technologies Secures $100 Million Through Preferential Allotment

By
Supriya Biswas
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0

Mumbai-based gaming and sports media company, Nazara Technologies, has successfully raised Rs 855 crore (approximately $100 million) through a preferential issue. The board approved the allotment on November 27, 2024, after receiving funds from eligible investors.

The raised capital will drive Nazara’s growth and expansion within the gaming and sports media sector, as stated in its stock exchange filing. The allotment has received initial approval from BSE and NSE, with final listing and trading approvals anticipated soon.

This funding round was initiated following a resolution passed by Nazara’s board in September 2024. Leading the investment was SBI Innovative Opportunities Fund, which subscribed Rs 220 crore for over 23 lakh shares. Junomoneta Finsol Private Limited invested Rs 150 crore for 15.71 lakh shares, while Think India Opportunities Master Fund LP also contributed Rs 150 crore. Individual investors Siddhartha Sacheti and Mithun Padam Sacheti each committed Rs 75 crore.

Additional investors included Cohesion MK Best Ideas Sub-Trust with Rs 57 crore, Chartered Finance & Leasing Limited with Rs 38 crore, and Discovery Global Opportunity (Mauritius) Ltd with Rs 35 crore. Ratnabali Investment Private Limited and Meenakshi Mercantiles Limited invested Rs 35 crore and Rs 15 crore, respectively, while Aamara Capital Private Limited contributed Rs 5 crore.

This fundraising effort has increased Nazara’s paid-up equity share capital from Rs 30.62 crore to Rs 34.20 crore.

In its Q2 FY25 results, Nazara Technologies reported a year-on-year revenue increase of 7.3%, reaching Rs 318.94 crore, alongside a 10.85% rise in profit to Rs 21.97 crore.

Pocket FM Achieves Remarkable Growth, Surpasses Rs 1,000 Cr Revenue Milestone in FY24

By
Supriya Biswas
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0

Pocket FM, the popular audio series platform, has seen a remarkable 6X increase in its operating scale for the fiscal year ending March 2024. The company also made significant strides in improving its financial health, reducing its losses by 21%.

The platform’s revenue from operations skyrocketed to Rs 1,051.97 crore in FY24, a substantial rise from Rs 176.36 crore in the previous fiscal year, according to the company’s official statement.

A major contributor to this growth was its subscription-based income, which accounted for 88.8% of total operating revenue. Subscription revenue surged 5.8X, reaching Rs 934.73 crore in FY24, up from Rs 160 crore in FY23. The spike in subscription income is largely attributed to the growth in microtransactions on the platform. Advertising revenue also experienced a massive boost, growing 7X to Rs 89.34 crore from Rs 12.5 crore in FY23.

Pocket FM currently offers over 75,000 audio series, with contributions from a vast network of 250,000+ writers globally. The platform has processed over 45 million transactions and has seen more than 40,000 AI-generated audio series, which have collectively generated over Rs 25 crore in revenue.

Anurag Sharma, CFO of Pocket FM, stated, “As we move closer to profitability, we continue to set new standards in innovation and operational efficiency within the entertainment sector. Our goal remains to provide scalable, immersive, and profitable content experiences.”

Additionally, the company made significant progress in improving its financial metrics. Pocket FM reduced its losses by 21%, bringing its loss down to Rs 165 crore in FY24 from Rs 208 crore in FY23. This resulted in an improved expense-to-revenue ratio, which dropped from 2.18 in FY23 to 1.16 in FY24.

Earlier in March 2024, Pocket FM successfully secured $103 million in its Series D funding round, led by Lightspeed and joined by Stepstone Group. With a total funding of $196.5 million, the company was valued at $750 million during its last equity round. Following this fundraise, Pocket FM also conducted its first-ever ESOP buyback, totaling $8.3 million.

In comparison, Pocket FM’s competitor, Kuku FM, reported a two-fold increase in its revenue, reaching Rs 88 crore in FY24. The company, backed by IFC and Fundamentum Partnership, also reduced its losses by 18%, bringing them down to Rs 96 crore.

Empowering Women Professionals: Ladies Who Lead Secures $1 Million in Funding

By
Supriya Biswas
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0

Exclusive women’s platform Ladies Who Lead (LWL) has secured $1 million in a pre-Series A funding round. The investment was led by Nithin Kamath’s Rainmatter, with additional participation from the Family Office of Jayant Davar.

This funding will help LWL expand its resources and mentorship offerings for women professionals and leaders across various sectors. The platform aims to build a supportive ecosystem that fosters professional growth and equitable opportunities.

Founded in 2021 by Aabha Bakaya and Aditya Ghosh, LWL is a members-only network dedicated to empowering women in leadership roles. Through initiatives such as the Titan and LWL Members clubs, it provides access to mentorship, curated workshops, upskilling programs, exclusive networking events, and social gatherings to address barriers like pay disparity and limited access to mentors.

With over 1,200 members spanning 50+ industries across Delhi-NCR, Mumbai, and Bangalore, LWL plans to expand its reach further nationwide. This move aligns with its vision to combat challenges such as the stark gender gap in India, where only 35% of women participate in the workforce, compared to a global average of 50%, and hold a mere 18% of senior leadership roles.

By nurturing an inclusive environment, LWL continues to pave the way for women professionals to thrive and drive change in their industries.

Nykaa Strengthens Portfolio with Majority Stake in Earth Rhythm

By
Supriya Biswas
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0

Leading beauty and wellness platform Nykaa has deepened its investment in the clean beauty segment by acquiring a majority stake in Earth Rhythm, a homegrown brand renowned for its organic and sustainable beauty products.

This move follows Nykaa’s earlier investment in Earth Rhythm in 2022, where it held a minority stake. The latest acquisition, achieved through primary and secondary transactions, solidifies Nykaa’s commitment to expanding its footprint in the clean beauty market.

With this strategic partnership, Nykaa plans to leverage its resources and expertise to accelerate Earth Rhythm’s growth. The focus will remain on innovation, robust marketing strategies, and a seamless omnichannel distribution network, while preserving Earth Rhythm’s core values and unique positioning.

Founded in 2019 by Harini Sivakumar, Sivakumar Varadarajan, and Arun Kumar, Earth Rhythm offers a diverse range of vegan and cruelty-free products. Its lineup includes skincare, hair care, and makeup items such as face masks, toners, hair oils, shampoos, conditioners, and lip balms. Known for its biodegradable and artificial fragrance-free offerings, Earth Rhythm has positioned itself as a leader in sustainable beauty.

Based in Gurugram, the brand previously raised $9.13 million from investors, including Anicut Capital, and has witnessed rapid growth in sales, customer acquisition, and category diversification. With over 250 SKUs across six categories, Earth Rhythm continues to expand its presence in the beauty and personal care market.

Nykaa, known for its extensive portfolio of beauty, wellness, and fashion products, aims to enhance Earth Rhythm’s market potential while competing with key players such as Amazon, Flipkart, and Purplle. This acquisition underscores Nykaa’s dedication to fostering innovation and sustainability within the beauty industry.

DailyObjects Sees 34% Revenue Surge, Posts Loss for FY24

By
Supriya Biswas
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DailyObjects, the Gurugram-based Direct-to-Consumer (D2C) brand known for its tech accessories and lifestyle products, has recorded an impressive 34% revenue growth in the fiscal year ending March 2024. Despite the revenue jump, the company reported a modest loss of Rs 3.9 crore compared to a small profit in the previous year.

According to its consolidated financial statement filed with the Registrar of Companies (RoC), DailyObjects’ revenue from operations rose to Rs 84.4 crore in FY24, up from Rs 63.2 crore in FY23. The company, which specializes in products like bags, wallets, charging solutions, and stationery, saw 98.8% of its revenue come from product sales, which increased by 33.6% to Rs 83.38 crore. The remaining income was generated through shipping and delivery charges.

However, the increase in revenue was offset by a 40% rise in the cost of procurement, which climbed to Rs 42.28 crore in FY24, compared to Rs 30.26 crore in FY23, accounting for 50% of the total expenses. Additionally, the company experienced a 24% rise in employee benefits and a 46.5% increase in marketing and advertising expenses, which reached Rs 11.34 crore and Rs 14.33 crore, respectively.

Shipping, delivery, legal, and overhead costs also surged, pushing total expenses up by 33.3% to Rs 84.2 crore. This combination of increased spending led DailyObjects to report a loss of Rs 3.92 crore for FY24, in contrast to a marginal profit of Rs 0.06 crore the previous year.

Excluding an exceptional cost of Rs 6.14 crore related to the write-off of prior receivables, the company’s financial performance showed a net loss. Its Return on Capital Employed (ROCE) and EBITDA margin stood at -43.98% and -4.3%, respectively. Despite the losses, DailyObjects reported current assets of Rs 20.76 crore at the end of FY24, with a unit cost that matched its revenue, meaning the company spent Re 1 to earn Re 1 during the year.

4o mini

ParkMate Secures $1.2 Million in Funding to Expand Smart Parking Solutions

By
Supriya Biswas
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0

ParkMate, a provider of advanced car parking solutions, has successfully raised $1.2 million in a fresh funding round, led by the early growth-stage venture fund Cactus Partners. Other investors, including Venture Catalysts and Marwah Group Family Office, have also contributed to the funding.

The company plans to use the funds to accelerate its growth, enhance its team, optimize operational efficiency, and innovate further in its smart parking services.

Founded by Dhananjaya Bharadwaj, ParkMate offers smart parking solutions targeting shopping malls, office complexes, hotels, and government-managed parking spaces. One of its key offerings, DaSH (Drop & Shop), guarantees parking within two minutes for car owners at shopping centers, malls, and business hubs. ParkMate has established relationships with leading brands like DLF, Phoenix Mills, and Fun Republic, as well as state governments of Uttar Pradesh and Telangana. The growing trend of smart cities is also a significant market for the company.

ParkMate faces competition from other players like Park+, Get My Parking, Park Smart, and Parky. Among these, Park+ is the market leader. Earlier this year, Park+ expanded into the on-demand driver services market with its new offering, Drive+, which positions it to rival services such as DriveU, Drivers4Me, and Cars24.

This investment by Cactus Partners marks its eighth funding commitment since January 2021. The firm’s portfolio includes companies like Lohum Cleantech, Kapture CX, Vitraya Technologies, and AMPM Fashions, with several notable exits in the tech and cleantech sectors.

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ALT Mobility Secures $10M in Series A Funding to Drive EV Expansion

By
Supriya Biswas
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0

Delhi-based commercial EV leasing and asset management startup ALT Mobility has raised $10 million in a Series A funding round led by European venture capital firm Eurazeo. Existing investors, including Shell Ventures, Twynam Earth Fund, and EV2 Ventures, also participated in the round.

This funding follows a previous investment of $6.45 million from its existing backers. ALT Mobility plans to utilize the funds to enhance its digital asset management platform, standardize battery technology, and expand its fleet to 30,000 vehicles by March 2026. Additionally, the company aims to manage assets worth ₹800 crore over the next 18 months.

Founded in 2021 by Dev Arora, Anuj Gupta, Harsh Dev Goyal, Jay Gupta, and Manas D Arora, ALT Mobility offers a full-stack EV leasing platform tailored for commercial users. The startup provides comprehensive services, including leasing, maintenance, charging, and real-time fleet monitoring, enabling businesses to transition smoothly to electric mobility while reducing costs and carbon emissions.

Currently, ALT Mobility operates a fleet of 10,000 vehicles across 20 cities in India, supporting fleet operators and drivers with data-driven insights and maximum fleet uptime.

The company also plans to expand its portfolio by introducing innovative “drive-to-own” options for drivers, leasing solutions for four-wheeler light commercial vehicles, and a Battery-as-a-Service (BaaS) model for second-life vehicles. These initiatives aim to strengthen ALT Mobility’s position in the growing EV market while empowering the driver-cum-owner segment.

ShopDeck Secures $8 Million in Funding to Boost D2C E-commerce Solutions

By
Supriya Biswas
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0

ShopDeck, a direct-to-customer (D2C) e-commerce solutions provider, has successfully raised $8 million in its latest funding round. The investment was led by Bessemer Venture Partners, with participation from Elevation Capital, Venture Highway (now part of General Catalyst), and Chiratae Ventures.

The funding will be utilized to enhance ShopDeck’s AI-powered technology infrastructure, strengthen its operations in tier-II and III cities, and recruit top talent.

Founded by Rishabh Verma and Harmin Shah, ShopDeck offers comprehensive tools for sellers to establish and manage their e-commerce stores, streamline logistics, and handle payment systems, enabling businesses to seamlessly sell products online.

Initially launched as WMall, a social commerce platform, the company transitioned into an e-commerce enablement platform called NuShop in 2022 before rebranding as ShopDeck. Over the years, it has gained significant support from Elevation Capital, Venture Highway, and Chiratae Ventures.

In the competitive e-commerce enablement landscape, ShopDeck rivals platforms like Shopify, Magento, and WooCommerce. Additionally, in the shipping and marketing space, it faces competition from players such as Shiprocket and Unicommerce-owned Shipway.

This funding marks a significant step for ShopDeck as it continues to support sellers in scaling their businesses digitally across India.

Meesho Introduces AI-Driven Multilingual Voice Bot for Enhanced Customer Support

By
Supriya Biswas
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0

E-commerce giant Meesho has unveiled a cutting-edge multilingual voice bot powered by generative AI to deliver personalized and human-like customer support on a large scale.

Catering primarily to users from tier II cities and beyond—who make up 80% of its customer base—this innovative voice bot is optimized for seamless functionality on basic smartphones, even in noisy settings, according to the company.

A standout feature of the bot is its ability to handle interruptions effectively, distinguishing between casual affirmations like “ji” or “okay” and genuine interruptions. This enhancement has contributed to a 10% increase in customer satisfaction (CSAT) scores.

The bot manages approximately 60,000 customer calls daily with a remarkable resolution rate of 95%, resulting in a 50% reduction in average handle time (AHT). It currently supports Hindi and English, with plans to include six additional regional languages in the future. Emotion recognition capabilities are also in the pipeline for upcoming updates.

Meesho, headquartered in Bengaluru, operates as a platform connecting suppliers with consumers and resellers, who utilize social platforms like Facebook and WhatsApp to market their products.

According to startup intelligence platform TheKredible, Meesho’s operational revenue grew by 32.8% to ₹7,615 crore in FY24, compared to ₹5,734 crore in FY23. The company also reported a significant reduction in losses, which dropped by 81.8% to ₹305 crore in FY24. Furthermore, Meesho reached profitability in June 2023, marking a key milestone in its journey.

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