MSwipe’s turnover takes a hit due to Covid- reports 40% decline in revenue in FY21
- ByTejika Bajaj | December 6, 2021
The point of sale (PoS) startup MSwipe has been hit badly due to Covid-19 as it has registered a 40% decline in its turnover in the financial statements of FY20-21.
The startup saw a 40% decline in its operating revenue to INR 209.6 crore in FY21 as compared to INR 348 crore in the preceding fiscal year. The two major revenue streams of the company included transaction processing and support service fees, the collection of which reduced significantly during FY21 owing to the global pandemic and the nation-wide lockdown.
As per the reports, transaction processing and support services fees declined by 42.2% and 35.3% respectively in the FY21. About 85% of the total operating revenue came through retail customers whereas the balance 15% came from corporate customers.
With the reduction in its scale of operations, MSwipe administered a fall in its expenses at a similar pace i.e. 40% from INR 520.22 crore in FY20 to INR 310.77 crore in FY21. Information technology (IT) expenses alone constitute 37% of total cost. This cost was reduced 45% to Rs 114.96 crore in FY21 from 210.38 crore in FY20.
The financial reports of MSwipe for FY21 indicate a negative growth which is a byproduct of the disruptions caused by the pandemic. In addition, the company has also been facing fierce competition from giants like Pine Labs, Paytm and HDFC as they compete for a sizable market share.
While the company is eyeing expansion of its PoS devices to over 100K customers, and has partnered with KreditBee and OneCard to enable their products on its terminal, the future remains a challenge for the decade-old MSwipe as competition is likely to heat up further with the potential entry of Tiger Global-backed Razorpay into offline swiping.
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