Better World Technology, the Indian branch of Zeta, a fintech SaaS company, became profitable in the financial year 2023 (FY23). It reported a profit after tax (PAT) of Rs 21.94 crore in FY23, compared to a loss of Rs 20.7 crore in FY22.
The company’s revenue from operations grew by almost 33 per cent to Rs 816.20 crore in FY23 from Rs 615.05 crore in the previous fiscal year.
Total income, including other income, increased to Rs 817.79 crore in FY23 from INR 616.11 Cr in the previous year, a growth of 32.73%.
Founded by Bhavin Turakhia and Ramiki Gaddipati in 2015, Zeta offers a comprehensive platform for financial institutions to process and issue debit and credit cards, provide loans and manage fraud and risk.
Zeta’s products are used by banks such as RBL Bank, IDFC First Bank, and Kotak Mahindra Bank. It is also utilised by French food services company Sodexo for processing payments.
Zeta’s expenses increased by 24.97 per cent to Rs 795.85 crore in FY23 compared to Rs 636.82 crore in FY22.
Employee costs accounted for the largest portion of expenses, rising by 22.53 per cent to Rs 631.57 crore from Rs 515.44 crore in the previous fiscal year, representing 79 per cent of total expenditure. Staff welfare expenses also significantly increased to Rs 12.13 crore in FY23 from Rs 3.97 crore in FY22.
Other expenses, including rent, training recruitment expenses and legal charges, rose by 35 per cent to Rs 151.07 crore from Rs 111.86 crore in the previous fiscal year.
The company’s cash and cash equivalents declined by 54.91 per cent to Rs 25.89 crore in FY23 from 57.42 crore in FY22. The EBITDA margin improved to 2.68 per cent in FY23 from 3.36 per cent in FY22.
Zeta became a unicorn company in May 2021 after raising USD 250 million in funding led by SoftBank. It has received a total funding of USD 340 million so far, with supporters such as SoftBank Vision Fund, Sodexo and Mastercard.
In addition to India, Zeta’s services are available in countries like Brazil, Spain, the Philippines and Vietnam. The company plans to expand its presence in North America, as it represents about 30 per cent to 35 per cent of the global revenue opportunity in its sector.
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