Clear, also known as Cleartax, a provider of tax and financial solutions to businesses and people, recorded strong financial success in the previous fiscal year. The company's operating scale increased by 93% year on year in FY24, while losses decreased by 59%, falling below Rs 100 crore for the same time. Clear's revenue from operations increased to Rs 209.84 crore in the past fiscal year (FY24) from Rs 108.77 crore in FY23, according to its consolidated financial report obtained from the Registrar of Companies.
Clear, which was previously known as Cleartax, offers tax and financial solutions to both businesses and consumers. Its business offerings include accounts payable, e-invoicing, and invoice discounting, which are arranged into three major categories: The Finance Cloud, compliance and supply chain. Individuals benefit from the platform, which simplifies tax filing and related services.
Clear earns money by providing tax and company secretarial services. It drew 91.5% of its income from software subscription and support services, which increased by 84.1% in FY24 to Rs 191.9 crore. Unlike FY23, the company sold software worth Rs 14.63 crore this year, with the remainder coming from platform, technical services, and commission for operating as a distributor for the buying and sale of mutual funds.
The Archit Gupta-led company received a mutual fund distributor license from the Association of Mutual Funds in India (AMFI) and released Black, a mutual fund distribution app, in January 2021. The company additionally generated Rs 4.92 crore from non-operating activities, including interest income, bringing its total revenue to Rs 214.76 crore in FY24.
Employee perks remained the greatest expense category, however they fell 19.4% to Rs 202.57 crore in FY24, including non-cash ESOP costs of Rs 11.78 crore. Expenses for web hosting and software support rose 17.7% to Rs 39.61 crore, while spending on business advertising rose to Rs 18.83 crore for the fiscal year ending March 2024.
Clear also spent Rs 6.43 crore on system integration costs and Rs 3.58 crore on sales commissions in FY24. Despite practically doubling its operating scale, the company reduced total expenses by 9.8% to Rs 310 crore in FY24. Clear decreased its losses by 58.8% to Rs 96.24 crore thanks to rigorous spending controls and strong growth. Operating cash outflows also improved, falling by nearly 60% to Rs 73.61 million in the last fiscal year.
Its EBITDA margin improved dramatically but remained negative at -40.26% due to high operational costs, highlighting the importance of continuing expense management. Clear spent Rs 1.48 per rupee of operating revenue in FY24.
Clear has Rs 53.39 crore in cash and bank accounts as of March 31, 2024, with current assets totaling Rs 112.59 crore. The company's outstanding losses increased to Rs 865.63 crore throughout the period. According to TheKredible, Clear has received $140 million to date, with Kora and Composite Capital Management serving as the major investors.
In a business that depends on the fear of severe consequences for a paperwork error, it's remarkable that none of the online alternatives promise escape from the dreaded 'query'. Or a pledge to remedy issues if they arise, provided they are not caused by consumer omissions. Focusing on financial distribution to shore up bottom lines is a clear indication of investor pressure rather than long-term vision.
