Darwinbox posts a revenue hike of 132% in FY22; Reports loss at INR 66.5 Cr

Darwinbox Cofounders

The HR tech platform Darwinbox was founded in Hyderabad by Chaitanya Peddi, Jayant Paleti, and Rohit Chennamaneni in the year 2015. The company has successfully raised its D-series funding recently.

Darwinbox is an HR Tech platform that integrated technology product that provides a wide variety of solutions including payroll management, recruitment, talent management, employee engagement, and analytics across the life cycle of employees.

As per the audited financial statements of the company, they have generated a revenue of INR 116.7 crores during FY22.

The company earns its major source of revenue from membership subscriptions, this accounted for INR 94.55 crores in FY22. And, the proceeds from providing consultancy services and implementation and integration of the platform accounted for INR 22.15 crores during FY22.

As per the expenses sheet, the expenditure towards employee benefits was around INR 104 crores which include INR 11.88 crores on ESOP expenditure. The company’s also looking into expanding its workforce, as of now they have nearly 1000 employees and looking to double it in the coming years.

IT expenditure is the next biggest expenditure for the company after its employee benefits. This was INR 28.35 crores for FY22. Along with this, they have spent INR 15.76 crores on legal and professional fees. At the same time, they had spent INR 5.93 crores on advertising and promotional expenditure taking the total expenditure for the year to INR 182.39 crores.

With the huge spike in total expenditure, the losses of the company have also increased, and ended the business for FY22 with an overall loss of INR 66.58 crores. 

As per the financial analysis, the company’s financial performance i.e., the ROCE and EBITDA margin of the company were at -8.33% and -48.45% respectively at the end of FY22. As per the analysis, it has been observed that the company has spent INR 1.56 to generate INR 1 as its revenue.

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