HRtech unicorn Darwinbox’s consolidated net loss soared 2.4X to INR 158.25 Cr in the financial year 2022-23 (FY23) from INR 65.72 Cr in the previous fiscal year on higher cash burn.
The Microsoft-backed startup’s bottomline took a hit despite its operating revenue almost doubling to INR 224.04 Cr in FY23 from INR 116.73 Cr in FY22.
Founded in 2015 by Chaitanya Peddi, Jayant Paleti and Rohit Chennamaneni, Darwinbox is a cloud-based HRtech startup that caters to companies’ HR needs across recruitment, onboarding, core transactions (leaves, attendance, directory), payroll, travel and people analytics, among others.
Being a SaaS provider, Darwinbox earns a majority of revenue from sale of services. The startup earned INR 177.95 Cr from subscription services in FY23.
Including other income, Darwinbox’s total revenue grew over 2X to INR 249.5 Cr during the under review from INR 121.21 Cr in FY22.
Where Did Darwinbox Spend?
The rise in the startup’s expenses outpaced the growth in its revenue during the year under review. Darwinbox’s total expenses soared 2.2X to INR 407.22 Cr in FY23 from INR 186.93 Cr in the previous fiscal year.
Employee Costs: Employee benefit expenses continued to account for the biggest portion of the startup’s total expenditure. Employee costs zoomed 2.1X to INR 222.31 Cr from INR 103.59 Cr in FY22. The sharp increase is an indication that the startup might have increased its headcount.
Cloud Hosting Expenses: Darwinbox’s cloud hosting expenses jumped 2.3X to INR 48.21 Cr in FY23 from 20.73 Cr in FY22. Software and technology cost also quadrupled to INR 16.66 Cr from INR 4.14 Cr in the previous fiscal year.
Advertising Expenses: Darwinbox’s advertising and promotional expenses grew 4.3X to INR 21.66 Cr in FY23 from INR 5.05 Cr in the previous year.
Backed by the likes of Peak XV Partners (formerly Sequoia India) and Lightspeed India, Darwinbox entered the unicorn club in early 2022 after raising $72 Mn in a round led by Technology Crossover Ventures (TCV).
In FY23, Darwinbox bagged funding from Microsoft and State Bank of India.
Darwinbox was eyeing a public listing by 2025, its cofounder Chennamaneni said earlier, adding the startup was aiming to make its India operations profitable by 2023.
The startup currently claims to serve over 800 organisations across over 115 countries and counts Adani, MatchMove, and Mahindra among its clients.
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