Mswipe Reports Flat Revenue Growth, Reduces Losses in FY24

Mswipe's operating revenue increased by 1% to Rs 276.9 crore from Rs 274.4 crore in the previous year

by Aishwarya Bhatt · January 3, 2025

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Point-of-sale solutions provider Mswipe Technologies reported marginal revenue growth for the fiscal year ending March 2024 while successfully reducing its losses. According to its consolidated financial statements, the Alpha Wave-backed company's operating revenue increased by 1% to Rs 276.9 crore from Rs 274.4 crore in the previous year.

Transaction processing fees continued to be the company's primary revenue source, contributing 63.09% of total operating revenue and growing 7.6% to Rs 174.7 crore. Support service fees saw a modest 4% increase to Rs 70.1 crore, though signup fees declined sharply by 44.4% to Rs 5 crore. The company's total income, including non-operating revenue, reached Rs 282.2 crore, marking a 1.39% increase.

On the cost front, IT expenses remained the largest component, rising 5.2% to Rs 164.2 crore and accounting for 50.16% of total expenses. The company managed to reduce employee benefit costs by 2.2% to Rs 77.3 crore, while depreciation expenses increased by 7.1% to Rs 34.5 crore. Overall, total expenses decreased marginally by 0.3% to Rs 327.3 crore.

The Mumbai-based B2B payment service provider, which offers comprehensive POS solutions including cards, wallets, and QR code payments, reduced its net losses by 5.7% to Rs 46.2 crore. The company reported a Return on Capital Employed of -16.94% and an EBITDA margin of -2.09%, spending Rs 1.18 to earn each rupee of operating revenue.

Having raised over $125 million from investors including Matrix Partners, B Capital, and Ola, Mswipe received a payment aggregator license from the Reserve Bank of India in February, enabling it to offer full-stack payment solutions to businesses. As of March 2024, the company maintained Rs 262 crore in current assets, including Rs 157 crore in cash and bank balance.

The company's performance reflects a broader trend among B2B fintech firms prioritizing loss reduction overgrowth in an increasingly competitive market with evolving technology and cost dynamics.