Nithin Kamath-backed investment platform smallcase managed to cut its losses by more than half, from Rs 455.6 crore in FY22 to Rs 165.3 crore in FY23, according to its RoC filings sourced from Private Circle. The improved bottomline was primarily driven by a nearly 60% decline in its expenses during the year.
Revenue from operations came at Rs 31 crore, which was close to the Rs 29 crore that the company had generated in FY22. The platform allows users to invest in a basket of stocks and ETFs curated by registered advisors and based on a theme or an idea.
Total expenses for the year added up to Rs 207.9 crore, compared to Rs 493.4 crore the year before. The decline was helped by a smaller loss on fair value changes of shares subject to buyback. In FY23, its employee-related expenses jumped nearly 70% to Rs 82.9 crore from Rs 49 crore a year ago.
Advertising and marketing costs were nearly flat year-on-year at Rs 66.2 crore in FY23. The company had crossed 10 million in total users on the platform last year, marking a 30% growth year-on-year. Total amount invested or transacted on the platform rose 50% to over Rs 65,000 crore, its founder and CEO Vasanth Kamath had told FE earlier.
smallcase was founded in July 2016 by IIT graduates Vasanth Kamath, Anugrah Shrivastava and Rohan Gupta to provide new investors with low-cost and transparent investment products. Its key investors include Sequoia Capital, Blume Ventures, HDFC Bank, Amazon and DSP.