Leegality, a leading document infrastructure platform, continued its impressive growth in the fiscal year ending March 2024. Building on its 100% revenue increase in FY23, the IIFL Fintech Fund-backed firm experienced an 87% rise in revenue this past fiscal year.
According to the financial report filed with the Registrar of Companies, Leegality’s operating revenue surged to Rs 62 crore in FY24.
Leegality supports businesses in digitizing document workflows, removing the need for physical paperwork in the lending sector. The platform offers digital infrastructure services such as eSign and eStamping, which were its sole revenue streams in FY24. Additionally, the company earned Rs 4.2 crore in interest from bank deposits, bringing its total income to Rs 66.41 crore for the year, a significant leap from Rs 35.51 crore in FY23.
On the expenditure front, employee costs accounted for the largest portion, representing 56% of total expenses. Employee benefit costs rose by 62.5%, reaching Rs 36.4 crore in FY24, compared to Rs 22.4 crore in FY23. E-Sign charges constituted 15% of overall costs, soaring 2.3 times to Rs 9.5 crore. Tech infrastructure expenses, which made up 10%, increased by 55%, amounting to Rs 6.6 crore. Other operational expenses, including stamp processing, advertising, and legal fees, brought the company’s total expenses to Rs 65 crore, up from Rs 39 crore in FY23, reflecting a 66% rise.
Thanks to its notable revenue growth, Leegality reached profitability in FY24, posting a profit of Rs 1.11 crore, compared to a loss of Rs 3.5 crore in FY23. The company’s ROCE stood at -2.75%, while its EBITDA margin was 3.33%. On a unit basis, Leegality spent Rs 1.04 for every rupee of operating revenue earned in FY24.
Despite operating in a competitive industry, Leegality’s path to profitability suggests the firm is maintaining strong economic fundamentals. As the trend toward digitization of documents continues, the demand for Leegality’s services is poised to grow. However, the company may face potential risks from government-backed alternatives like Digilocker, should they expand their services to compete directly.