Darwinbox records Rs 116 Crore revenue in FY22
Following a $72 million series D round from TCV, Salesforce Ventures, Sequoia India, Lightspeed, and others in the final quarter of FY22, the HR tech platform Darwinbox became a unicorn. The Hyderabad-based company was able to increase its revenue by more than twofold during the same financial year period.
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In FY22, Darwinbox saw a 2.33X increase in scale from Rs 50 crore in FY21 to Rs 116.7 crore, according to the consolidated financial statements submitted to the Registrar of Companies.
A cloud-based integrated HR technology product called Darwinbox offers services for hiring, paying employees, engaging employees, managing talent, and conducting people analytics throughout the employee life cycle.
According to Fintrackr’s analysis, membership subscription fees accounted for 81% of the company’s revenues, which increased 2.4X to Rs 94.55 crore in FY22 from Rs 38.99 crore in FY21.
The remaining operational income was generated by its implementation and integration consulting services, which saw a 2X increase to Rs 22.15 crore in FY22 from Rs 11 crore in FY21.
Darwinbox
Employee benefit costs made up 57.1% of the total expenditure on the cost side. During FY22, this expense increased by over 2.5X to Rs 104.1 crore. Additionally, ESOP costs of Rs. 11.88 crore were included (non-cash). The company had about 1,000 employees in 2022, and it hopes to reach 2,000–2,500 over the following two years.
The company’s second-highest expense in FY22—which increased 2.85X to Rs 28.35 crore—was information technology. In FY22, the price of legal and professional fees increased 3.6X to Rs 15.76 crore.
The company increased its advertising and promotional costs by an additional Rs 5.93 crore, which caused a 2.86X increase in overall spending to Rs 182.39 crore in FY22 from Rs 63.6 crore in FY21.
The company’s losses increased 7.6X to Rs 66.58 crore in FY22 from Rs 8.71 crore in FY21 due to a more than twofold increase in costs. As a result, the cash outflow from activities in the most recent fiscal year increased 6.1X to Rs 59.6 crore.
Darwinbox stated that its India business is profitable during the most recent funding round, and the company plans to achieve group-level profitability by 2025. It also raised about $9 million after the Series D round from Microsoft and State Bank of India (SBI).
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