CASHe, a platform for digital and personal loans, showed consistent growth in the fiscal year that concluded in March 2024. However, a dramatic rise in client acquisition expenses during the previous fiscal year caused the Mumbai-based company's profit to collapse by 95%.
CASHis consolidated financial statement, which was obtained from the Registrar of Companies (RoC), shows that its revenue from activities increased by 16.1% to Rs 650.9 crore in FY24 from Rs 560.6 crore in FY23. In India, CASHe is a digital lending platform and personal loan provider aimed at Gen Z and millennials. Additionally, it offers salaried people "buy now, pay later" products via mobile apps and the internet.
The biggest source of income, the sale of services, decreased 6.2% to Rs 492.52 crore, or 75.66% of total operating revenue. Its revenue from other operations increased by 4.4 times to Rs 158.4 crore. In FY24, the company's total revenue was Rs 668.54 crore, including an additional Rs 17.6 crore from interest income.
The biggest expense on the expense side was still the impairment loss on financial assets, which increased 26.9% to Rs 256.84 crore, or 38.58% of total costs. While customer acquisition costs jumped by 63.5% to Rs 40.38 crore, finance costs grew by 20.8% to Rs 147.39 crore.
Employee benefits and collection costs increased by 29.5% and 41.1%, respectively.Employee benefits and collection costs increased by 29.5% and 41.1%, respectively. Overall, CASHe's expenses rose from Rs 544.1 crore in FY23 to Rs 665.8 crore in the most recent fiscal year, a 22.4% increase.
CASHe's FY23 earnings of Rs 26.33 crore dropped to Rs 1.44 crore, a 95% decrease. It had an EBITDA margin of 23.21% and a ROCE margin of 40.21%. In the most recent fiscal year (FY24), it cost Rs 1.02 per unit to generate one rupee of operating revenue. In FY24, the Mumbai-based company's current assets were valued at Rs 718 crore, and its cash and bank balances increased by 92.3% to Rs 95.22 crore.
A credible source claims that CASTo date, he has raised about $38 million in investment. This includes $19 million in equity capital.This includes $19 million in equity capital that was raised in January 2022 from its parent company, TSLC Pte Ltd, which is domiciled in Singapore.
CASHe would be thankful to have some dry powder left over for the current and maybe upcoming fiscal year, as the organization appears to be headed for some difficult times following its most recent significant fund raise in early 2022. We anticipate that CASHe will do no better than the majority of lenders in FY25 due to a combination of worsening markets, intense competition, and stricter regulatory scrutiny.
As the firm's equity capital runs low, future loan obligations will actually cost more. To make sure a solid start isn't interrupted at its height, the company will need to accomplish something truly exceptional.
