Rupeek, backed by Peak XV Partners, managed to reduce its net loss from Rs 364.4 crore in FY22 to Rs 281.6 crore in FY23, demonstrating a significant cost control strategy. Its total expenses dropped by a quarter from Rs 499.4 crore in the previous fiscal year to Rs 376.9 crore in FY23.
However, Rupeek’s total revenue faced a 26.5 per cent year-on-year fall, reaching Rs 97.2 crore during FY23. Revenue from operations also dipped by 27.7 per cent to Rs 88.9 crore in FY23 compared to Rs 122.9 crore in FY22.
Rupeek, founded in 2015 by Sumit Maniyar and Ashwin Soni, provides instant gold loans and it generates revenue primarily from services, categorising it into commission income and income from lending business. In FY23, Rupeek earned Rs 40.8 crore from commissions and Rs 48.1 crore from its lending business.
Employee benefit costs, the largest expense category, decreased to Rs 161.1 crore in FY23 from Rs 178.1 crore in the prior year. This reduction was in line with the startup’s restructuring efforts, including two rounds of layoffs that resulted in over 250 employees being let go in FY23.
In terms of unit economics, Rupeek spent Rs 4.2 to earn every Rs 1 from operations, emphasising its focus on cost efficiency.
While Rupeek faces financial challenges, it continues to be supported by investors like Lightbox, GGV Capital, Accel, Bertelsmann and Peak XV. In the past year, the company had planned to raise approximately USD 16 million in a new funding round from Accel, Peak XV and other backers.
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