Revenue for SaaS unicorn LeadSquared reaches Rs 200 Cr in FY22, losses increase by 5.4X

• ByStartupStory     |    October 11, 2022

After obtaining $153 million in a Series C fundraising round from WestBridge Capital and current investors in June 2022, the software as a service (SaaS) platform LeadSquared became a unicorn. The company’s admission to the $1 billion value club followed a nearly 2X increase in its scale during FY22.

According to its annual financial records submitted to the Registrar of Companies, LeadSquared has maintained that momentum, with income from operations rising to Rs 193.5 crore in FY22 from Rs 99.5 crore in FY21 (RoC).

Customers of LeadSquared can take advantage of comprehensive sales, marketing, and onboarding automation solutions. According to the study, the company’s sole source of operating revenue in FY22 will be the sale of these services. In FY22, it also generated revenue of Rs 7.1 crore, primarily from its financial assets.

Employee benefits costs are the company’s biggest expense, accounting for over 54% of total costs and increasing 2.3X to Rs 142.2 crore in FY22. As a SaaS business, technical services are another significant expense that increased 2.4X to Rs 58 crore in FY22. During the previous fiscal year, advertising and marketing costs climbed by 2.6X and 2.4X, respectively, to reach Rs 9.76 crore and Rs 16.21 crore.

In order to reach Rs 262.3 crore in FY22, the corporation increased its overall expenses by another Rs 13.21 crore for legal and professional fees. Its losses also increased 5.4X to Rs 62 crore in the most recent fiscal year from Rs 11.3 crore in FY21 as all major expense centres grew faster than revenues.

LeadSquared paid Rs 1.36 to make one rupee on a unit level. The company’s EBITDA margin and ROCE declined to -28.58% and -42.73% in the fiscal year ending in March 2022 as a result of a significant cost rise.

LeadSquared stated during its most recent fundraising effort that it has more than 2,000 clients. It is also present in New Jersey, the Philippines, South Africa, Australia, and Indonesia in addition to Bengaluru. Looking at the company’s revenue, it is clear that it was valued at more than 38X revenue, a figure that will undoubtedly normalise with further strong growth. LeadSquared CEO Nilesh Patel has stated that the business aims to generate $200 million (about Rs. 1,600 crores) in revenue over the following three to four years.

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