Fintech major Mswipe Technologies’ net loss declined 45% to INR 49.1 Cr in the financial year 2022-23 (FY23) from INR 90 Cr in FY22 as it was able to reduce its cash burn.
Revenue from operations rose 14% to INR 274.5 Cr during the year under review from INR 240.7 Cr in FY22, as per the company’s filing with the Ministry of Corporate Affairs.
Mswipe, founded in 2011 by Manish Patel, provides digital payments solutions to merchants. Its offerings include POS terminals with integrated offline and online card payments, QR codes, and audio devices for payment confirmation.
It earns the majority of its revenue from sale of services.
Including other income, Mswipe’s total income rose 12% to INR 278.3 Cr during the year under review from INR 247.7 Cr in the previous fiscal year.
Where Did Mswipe Spend?
The company was able to control its expenses during the year under review. Despite the increase in top line, Mswipe’s total expenditure declined 3% to INR 328.4 Cr in FY23 from INR 337.8 Cr in FY22.
Information Technology Expenses: IT expenses accounted for the largest chunk of expenditure in FY23. Mswipe spent INR 156.1 Cr under the head, an increase of 7% from INR 145.8 Cr in FY22.
Employee Costs: Employee benefit expenses declined 9% to INR 79.1 Cr in FY23 from INR 86.6 Cr in FY22. Employee costs comprise salaries, PF contribution, gratuity, among others.
It must be noted that Mswipe got in-principle approval from the Reserve Bank of India (RBI) for a payment aggregator licence in FY23. However, its application is still under process and it cannot operate as a payment aggregator as of now, as per the latest update on the RBI’s website.
At the time of receiving the in-principle approval, Mswipe said it would develop an in-house online payment gateway and offer full-stack payment solutions to offline and online merchants.
In August, Mswipe expanded its services to the UAE in partnership with Etisalat by e&.
In November this year, Mswipe elevated chief executive officer (CEO) Ketan Patel as a cofounder. Additionally, Nayantara Bhargava, formerly in charge of banking and partnerships, was elevated to the role of chief business officer.
Mswipe competes with the likes of PhonePe, Paytm, Ezetap, and Innoviti.
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