Marketing automation leader WebEngage experienced a modest uptick in revenue but saw its losses balloon threefold in the fiscal year ending March 2024. Interestingly, the company had been edging closer to profitability during FY20-22.
The company’s revenue from operations rose by 9.5%, reaching ₹140.69 crore in FY24 compared to ₹128.46 crore in FY23, as per its consolidated financial filings with the Registrar of Companies (RoC). WebEngage provides a comprehensive customer engagement platform that empowers businesses to automate marketing across multiple channels, including email, SMS, push notifications, mobile apps, and WhatsApp. With over 600 clients, it caters to a wide spectrum of internet-first and new-age enterprises.
Domestic service revenue grew to ₹92.66 crore, while revenue from international services stood at ₹47.8 crore. Additionally, the Mumbai-based company earned ₹9.7 crore through interest and other non-operational sources, bringing its total income to ₹150 crore in FY24.
On the expenditure front, employee benefits emerged as the largest cost, doubling to ₹91.57 crore and accounting for 41% of total expenses. IT and advertising expenses also saw notable increases of 10.4% and 15.5%, amounting to ₹71.11 crore and ₹24.16 crore, respectively. Combined with other operational costs, including technology, legal, and rent, WebEngage’s total expenses surged 40% to ₹221.08 crore, up from ₹158.18 crore in FY23.
This sharp rise in operational costs contributed significantly to the company’s deepening losses, despite steady revenue growth.
4o