Setu Records Rs 3 Cr Revenue in Fy21 Even as Losses Climb to Rs 19 Cr

Fintech infrastructure firm Setu has broadened its offerings and currently includes data, payments as well as lending and investments through an Automated Programming Interface (APIs). The company announced in August that Google Pay partnered with Setu to provide fixed deposits from Equitas Small Finance Bank.

Although this company that is backed by Lightspeed startup is growing at a good rate, it appears to be at a pre-revenue phase as far as revenue is concerned for FY21.

Setu has reported operating revenues of 3.31 crore in FY21 as compared to none in FY20. This is the 2nd full financial year of operation for Setu. The majority of the revenue comes from the selling services (subscription charge).

You may also like:

• INDmoney is Expected to Raise $100 Mn in a Round Led by Tiger Global

• Nykaa Updates Its Fresh Equity Offer to Raise 630 Crore in IPO

The Bengaluru-based business has been able to make 5.74 crore during FY21. This is additional income from interest earned on bank deposits. This is 334% higher than FY20. The company raised fifteen million (Rs 110 crore) Series A round at the start of FY21.

To earn this operating profit, Setu has spent 228 percent more in FY21. This is the rate of 27.96 crore, up from 8.52 crore in FY20. In accordance with the B2B model, its old set of costs were for salary and benefits for employees as well as other plans. The expense jumped by 254% in FY21 and reached 23.51 crore in FY21. 23.51 crore, up from the figure of 6.63 million in FY20.

The three-year-old firm also put aside more than 1.73 billion on consultation services in FY21. The cost increased by 226% during the previous fiscal year, compared to 52 thousands in FY20. At a unit-level, Setu spent Rs 8.45 to generate a rupee operating revenues in FY21.

The increase in total expenses has boosted setu's cash outflow by 70%, to Rs 15.3 crore in FY21 opposed to the just Rs 9 crore in the FY20.

Also read: With Premji Invest’s participation, Purplle latest round crosses $100 Mn

Although the epidemic affected the businesses of all industries, Setu is unlikely to suffer a significant hit since it's a technology infrastructure company in a market which is rapidly changing and expanding. This means that Setu's primary priority will be to roll its products more quickly in the effort to reduce the burn rate in the year 4. With an appropriate product portfolio and technological expertise it will be an option for acquisition by any large company or group looking to establish an investment market.

For such informative news and updates of the Indian startup scene, check out Entrackr.