Exotel is a cloud telephony platform offering enterprise tech funding startup that announced a 32.1 percent increase in its operational revenue to Rs 420 crore in FY23. The startup provides internet-enabled cloud communication services, including an SMS contact center for businesses to manage their customer engagement using the cloud. These cloud communication services are the main source of revenue for the company. The startup offers full-stack customer engagement services using advanced technologies and artificial intelligence. Here we are talking about Enterprise tech startup Exotel reported a revenue of Rs 400 crore with a 2.5 times increase in losses in FY23.
Entrackr mentioned in its report that the firm also earns its income through chatbot services, browser extensions, Software Development Kits, mobile applications, and the sale of its products, such as APIs. The operating revenue for this financial year crossed 81% through domestic services, and the remaining came from the Middle East, Southeast Asia, and Africa. The company has secured over 100 million USD to date including $40 million raised during a funding round led by Steadview Capital in 2022. The startup data intelligence platform, the kredible mentioned that A91 partners are the largest external stakeholder of the firm with 25.7 percent stake followed by Blume Ventures.
Exotel offers an online customer conversation platform to provide the best customer experience. This cloud-based system enables companies to manage customer calls efficiently without any expensive telephony equipment. The legal, marketing, telephone postage, hosting, and other expenses take up to 51.8 percent which is Rs 554 crore of the total expenses. However, 42.2 percent of the total expenditure goes to employee benefits. The total expenditure of the firm increased by 43.3 percent to Rs 245 crore in FY23. The startup reported a 2.5 times increase in its losses to Rs 109 crore for this financial year.
The enterprise funding company focuses on improving its business model while offering more innovative solutions, positioning it well in the global market. The company plans to minimize losses by minimizing operating expenses and employee benefits. The employee benefits have a 45 percent increase compared to the last year. The EBITDA margin also declined and stood at -21.9%, while the ROCE also went negative to -18.3 percent. However, the startup claims to have a revenue run rate of Rs 400 crore with an annualized rate of 70 percent.
Conclusion
Exotel announced a 32.1 percent increase in operational revenue to Rs 400 crore. This enterprise tech startup offers cloud communication services to help startups manage customer calls professionally. These cloud communication services and sales of product services, including APIs, are the primary source of revenue for the company. The company has investors, including Bluestone and A91 partners.
The startup had a 2.5 times increase in its losses to Rs 109 crore in FY23. The total expenditure of the firm increased by 43.3 percent and crossed Rs 245 crore in the same duration. The company plans to reduce its expenses on employee benefits to decrease its losses. The marketing, telephone postage, hosting, and other expenses take up to 51.8 percent of the overall expenditure.
