Perfios, a leading fintech SaaS startup, has posted an impressive 819.2% year-on-year growth in its consolidated net profit, reaching INR 71.7 crore for the financial year 2023-24 (FY24). This remarkable performance comes on the back of strong revenue growth and improved margins. In FY23, Perfios reported a modest INR 7.8 crore in net profit.
Strong Revenue Growth
Perfios’ revenue from operations grew by 37.1%, totaling INR 557.8 crore in FY24, up from INR 406.8 crore in FY23. With other income of INR 11.7 crore, including gains from the sale of mutual funds, interest on loans, and fixed deposits, the company’s total revenue for FY24 reached INR 569.5 crore.
The company has also seen a 32.4% increase in its domestic revenue, which amounted to INR 505.6 crore in FY24, compared to INR 382 crore in FY23. International sales grew by 111.9%, from INR 24.7 crore in FY23 to INR 52.2 crore in FY24, indicating a growing global footprint.
Service Income and Profit Margins
A key contributor to Perfios’ revenue has been its software services, which accounted for over 84% of the company’s total operating revenue. Service income surged by 37.6%, reaching INR 472.2 crore in FY24. The company’s software coding and maintenance services, in particular, saw a substantial 109.7% jump, from INR 39.1 crore to INR 82 crore. This growth in service income, alongside higher margins, played a pivotal role in the company’s profitability.
Increased Spending
In line with its revenue growth, Perfios’ expenses also increased by 28.2%, totaling INR 495.5 crore in FY24. Employee benefit expenses, a major cost category for the company, grew by 36.4% to INR 291.2 crore. The company also allocated INR 11 crore for share-based payments (ESOPs) in FY24.
Perfios’ spending on cloud hosting surged by 34% to INR 44.5 crore, while data and processing costs more than doubled to INR 23.9 crore, reflecting its expanding infrastructure needs. Meanwhile, legal and professional fees decreased by 29.3%, from INR 41.2 crore in FY23 to INR 29.1 crore in FY24.
The Unicorn Milestone
Perfios achieved a major milestone in March 2024 by entering the unicorn club after raising $80 million in a funding round led by Teachers’ Venture Growth (TVG), the late-stage investment arm of Ontario Teachers’ Pension Plan. This funding valued the company at over $1 billion, solidifying its position as one of the top fintech SaaS providers globally.
IPO Plans and Leadership Changes
Perfios is also preparing for its initial public offering (IPO), eyeing to raise $500 million at a valuation of $2 billion. The IPO is expected to be a pivotal move in the company’s growth trajectory, although reports suggest that the listing may not occur in 2024 as initially planned.
To strengthen its leadership team ahead of the IPO, Perfios appointed Sumit Nigam as Chief Technology Officer (CTO) and Anu Mathew as Chief People Officer (CPO) in late 2023. These appointments reflect the company’s readiness for the next phase of its expansion.
Perfios’ phenomenal growth in FY24 marks a significant achievement for the fintech SaaS startup. With strong revenue streams, a growing global presence, and a path toward IPO, Perfios is positioning itself as a leading player in the fintech space. As the company continues to scale, it remains focused on delivering high-quality software solutions to financial institutions worldwide.
