Cashfree, the online payments and banking technology firm backed by SBI, has reported a significant increase in losses, recording Rs 133 crore in FY23 compared to Rs 3 crore in FY22. The surge in losses is attributed to a substantial rise in employee benefits and payment processing costs, according to the company's financial statements filed with the Registrar of Companies (RoC).
On the revenue front, Cashfree reported a robust growth, with revenue from operations reaching Rs 614 crore in FY23, up from Rs 350 crore in FY22. The company experienced a 75.43% growth in its operating scale during FY23, with the commission charged from merchants increasing by 75% to Rs 613.29 crore in the last fiscal year.
Processing charges accounted for 59% of Cashfree's total expenditure, which surged 2.1 times to Rs 446 crore during FY23 from Rs 208 crore in FY22.
Despite the increased losses, Cashfree continues to expand its offerings. Last month, the company received final authorization from the Reserve Bank of India (RBI) to operate as a payments aggregator. It also ventured into payment orchestration with the launch of 'FlowWise,' introducing a self-hosted payments orchestration concept, allowing payment management directly on the merchant's infrastructure.
Akash Sinha, CEO and Co-founder of Cashfree, stated that FlowWise aims to help merchants reduce payment processing costs by up to 40% while offering a seamless checkout experience. Cashfree, a leading payment service provider in India, processes transactions worth $40 billion annually and is backed by investors such as Silicon Valley's Y Combinator, Apis Partners, and the State Bank of India. The company was also incubated by PayPal.
(With Agency Inputs)
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