Smallcase is an online fintech platform that provides investment solutions for businesses and individuals. The startup showed a 120.3 percent increase in its operating revenue to Rs 67.4 crore in FY24. The company saw a huge decrease in its loss by 74.4 percent with a loss of Rs 34 crore in the same duration. The company allows users to build investment portfolios by investing in basket stocks and exchange-traded funds managed by experts. These services and money through transaction fees are the company’s primary source of revenue.
Entrackr mentioned in its report that the firm also earns its income from research service fees, interest on deposits, and investment gains. Interest on gains and income stood at Rs 7.6 crore. This increased the total revenue to Rs 75 crore in this financial year. The online platform also allows users to create portfolios for payments and transactions. The payment fees from brokers accounted for 85.8 percent of the total revenue and increased by 2.6 times to Rs 57.8 crore in this financial year.
The company has raised over 70.9 million USD across multiple funding rounds since its inception, including 41.2 million USD raised during its series C funding round led by Faering Capital, Blume Ventures, and other investors. The startup data intelligence platform, thekredible mentioned that the existing investor Peak XV remained as the firm’s largest external stakeholder followed by Fearing Capital and Blume Ventures.
The company claims to have continued cost-cutting measures by reducing advertising costs. The data intelligence platform, tracxn mentioned that Sequoia Capital is the company’s largest institutional investor. Smallcase offers online fintech services with the best customer experience. This fintech startup enables companies to manage and record their investment record efficiently.
The advertisement and promotion expenses were reduced by 75.8 percent to Rs 16 crore in FY24. The legal, maintenance, rent, and other expenses increased the total cost by 38.6 crore to Rs 108 crore in the same duration. However, 64.8 percent of the overall expenses go to employee benefits.
The Bengaluru-based startup is focused on improving its business model while offering more innovative fintech solutions, positioning it well in the global market. The employee benefit decreased by 15.7 percent to Rs 70 crore in FY24. The EBITDA margin also improved and stood at -41.33 percent while the ROCE was reported to be around -23.61 percent in the same period. The company faces competition with other companies in the same segment such as MakeMyFund, and StoxBox.
Conclusion :
Smallcase announced a 120.3 percent increase in its revenue from operations to Rs 67.4 crore in FY24. This fintech startup offers an online platform for brokers to facilitate transactions and investments in exchange-traded products. The money earned through transaction fees and interest on gains are the company’s major sources of revenue.
The startup reported around a 74.4 percent decrease in its loss to Rs 34 crore in FY24. The total expenditure of the firm increased by 38.6 percent and crossed Rs 108 crore in the same duration. Smallcase competes with other online investment platforms like MakeMyFund.
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