Digital adoption platform Whatfix has reported a remarkable growth of 49.1% for the fiscal year ending March 2024, alongside a significant 20% reduction in year-on-year losses.
According to its consolidated financial statements filed with the Registrar of Companies, Whatfix’s revenue from operations climbed to Rs 424.58 crore, up from Rs 284.74 crore in FY23. This growth can be attributed to an expansion of services, particularly in international markets. Additionally, the company recorded a non-operational income of Rs 20.77 crore, resulting in a total income of Rs 445.36 crore for FY24.
Whatfix primarily generates revenue through software subscriptions and professional services that allow customers to effectively use its hosted platform throughout their contract periods. These services are offered on a subscription basis.
The United States emerged as Whatfix’s largest revenue source, accounting for 72.13% of its total earnings. Revenue from the US surged by 77.4%, reaching Rs 306.23 crore in FY24 compared to Rs 172.66 crore in the previous fiscal year. Revenue from Europe was reported at Rs 90.61 crore, while the Middle East contributed Rs 6.89 crore during the last fiscal period.
In line with its growth, Whatfix’s expenses also rose, with employee benefits making up the largest portion at Rs 450.65 crore. Other significant expenses included Rs 230.55 crore in operational costs, reflecting a 27% year-on-year increase. However, finance costs saw a significant decline of over 79%, totaling Rs 31.1 crore due to reductions in certain liability expenses.
Despite a substantial increase in scale, Whatfix managed to decrease its losses by 20%, bringing them down to Rs 262.63 crore. This decline in losses, coupled with revenue growth, underscores the company’s strategic emphasis on cost efficiency and revenue-generating services. The adjusted bottom line also benefitted from the absence of specific one-time costs that had previously affected financial results in FY23.
In September, Whatfix secured $125 million in a Series E funding round led by Warburg Pincus, with participation from SoftBank Vision Fund 2. Following this, the company announced a $58 million employee stock buyback program, marking the second-largest ESOP buyback of 2024, just behind Swiggy’s $65 million buyback.
Founded by Khadim Batti and Vara Kumar, Whatfix has raised over $265 million to date, with its valuation nearing $900 million as it approaches unicorn status.