SUMMARY
- Smallcase’s revenue from operations soared 120.3% YoY to Rs 67.4 crore in FY24.
- Total expenses were Rs 108 crore in FY24, 38.6% down from Rs 176 crore in FY23.
- Smallcase cut its losses by 74.4% to Rs 34 crore in FY24.
Smallcase‘s revenue from operations soared 120.3% YoY to Rs 67.4 crore in FY24 from Rs 30.6 crore in FY23, as per its consolidated annual figures from the Registrar of Companies.
The Amazon-backed company’s platform helps brokers facilitate transactions in exchange-traded products. Its primary source of income is transaction fees paid by brokers, which accounted for 85.8% of its total revenue, and grew 2.6X to Rs 57.8 crore in FY24.
Revenue from research service fees and ancillary services was Rs 5.1 crore and Rs 4.5 crore, respectively. Smallcase earned an additional Rs 7.6 crore from interest on deposits and profits from investments, bringing its total revenue to Rs 75 crore in FY24 from Rs 43 crore in FY23.
Employee benefits emerged as the largest expense category for Smallcase, representing 64.8% of its total costs. This expense shrank by 15.7% to Rs 70 crore in FY24, which also included Rs 2.9 crore as non-cash ESOP cost.
The cost of advertising and promotion fell by 75.8% to Rs 16 crore in FY24. Other expenses, including technology, legal, rent, maintenance, and overhead costs took the total expense to Rs 108 crore in FY24, 38.6% down from Rs 176 crore in FY23.
The cost of net loss on fair value changes of shares subject to the buyback of shares of Rs 141 crore in FY24 and Rs 32 crore in FY23, respectively, has been excluded.
According to the shareholder agreement, in September 2023, shareholders gave up their rights to buy back certain shares, rendering these rights unenforceable. From September 30, these shares were recognized as equity instruments under Ind AS. A fair value adjustment of Rs 141 crore (up from Rs 31.65 crore on March 31, 2023) was recorded in the profit and loss statement, with Rs 1,081.78 crore reclassified to equity share capital and securities premium.
On the back of impressive revenue growth and controlled expenses, Smallcase cut its losses by 74.4% to Rs 34 crore in FY24. Its ROCE and EBITDA margins saw improvements to -23.6% and -41.3%, respectively. On a per-unit basis, the company spent Rs 1.60 to generate a rupee in FY24.
Smallcase has secured around $70 million in funding to date, including $40 million in its Series C funding round led by Fearing Capital in 2021. Peak XV is the largest external investor, followed by Fearing Capital and Blume Ventures.
