Open Financial Technologies, a banking platform that offers small and medium businesses facilities such as payments, accounting, and credit, posted a 17% drop in revenue for FY24, while lower expenses narrowed net loss to Rs 168.5 crore from Rs 243.8 crore a year ago.
Founded in 2017, the company has struggled to scale its topline to justify its unicorn valuation.
In FY24, revenue from operations dropped to Rs 24.8 crore from Rs 29.9 crore in the preceding year, according to its RoC filings, sourced via Private Circle research.
Expenses during FY24 shrank about 35% to Rs 192 crore, primarily due to a massive decline in advertising costs. The company slashed its ad and promotional expenses by nearly 85% to Rs 8.8 crore in FY24, from Rs 57.7 crore a year ago.
Meanwhile, employee costs, which form the largest chunk of its expenses, were also lower by about 24% at Rs 112.8 crore during the year. In FY23, Open had managed to increase revenue by 24% while narrowing losses to Rs 242.2 crore from Rs 249.3 crore. The company had also received approval for a payment aggregator license from the Reserve Bank of India in 2022.
Open became the 100th unicorn in India in 2022 following a $50 million Series D round led by IIFL, with participation from existing investors Temasek Holdings and Tiger Global Management. To date, the company has raised $186 million over seven rounds, as per Tracxn.