SUMMARY
- Cashfree Payments’ revenue from operations rose by 4.7% to Rs 642.7 crore in FY24.
- The company’s losses also saw a marginal increase to Rs 135 crore in FY24.
- The company’s total expenses saw a slight increase, reaching Rs. 779.43 crore in FY24.
Cashfree Payments‘ revenue from operations rose by 4.7% to Rs 642.7 crore in FY24 from Rs. 613.8 crore in FY23, as per its annual financial reports submitted to the Registrar of Companies.
This flat growth in revenue is mainly due to a slowdown in growth, which can be traced back to a one-year ban on accepting new merchants by the Reserve Bank of India, from December 2022 to December 2023.
Given that the Bengaluru-based company has not bagged new funding for over a year, its income from non-operating sources such as bank deposits and refunds from income tax amounted to just Rs 2.1 crore. When these sources are added, the company reported a total revenue of Rs 644.7 crore for the year under review.
Although the company did not disclose the breakdown of its revenue for the fiscal year 2024, its service offerings were the only revenue stream, as per its filings. Analysis suggests that Cashfree earns revenue through transaction-based fees, which are collected either as a percentage or a flat fee on transactions and services like business payments, among others.
Material cost emerged as the largest expense for Cashfree, which remained constant at Rs. 426.6 crore. The cost of employee benefits increased by 23% to Rs 245 crore in FY24 from Rs 198.4 crore in FY23. Other expenditures include merchant discount rates, infrastructure, and compliance costs. The company’s total expenses saw a slight increase, reaching Rs. 779.43 crore in FY24 from Rs 750 crore in FY23.
The company’s losses also saw a marginal increase to Rs 135 crore in FY24 from Rs 133 crore in FY23.
Cashfree primarily competes with payment gateway companies like Razorpay, PayU, and CCAvenue. In FY24, Razorpay’s payment gateway business saw revenue of Rs 2,068 crore, with a profit after tax of Rs 34 crore. PayU’s revenue only grew by 11% to $444 million in the year under review, and it also reported losses.
Over its nine-year history, Cashfree has raised Rs 321.57 crore ($42 million) though it has not sought new funding since June 2021, the final tranche of its Series B funding round. The company initially announced its $35 million Series B round in November 2020. The company is currently in discussions to seek new funding, although these discussions have not yet been finalized.
The fintech is expected to expand its operations further in the current fiscal year, as the benefits of its Payment Account and Payment Gateway licenses are anticipated to be received in FY25.
