Employee management platform Advantage Club's FY23 revenue jumps 94% to Rs 323Cr

Employee management platform Advantage Club has reported an impressive growth trajectory in the fiscal year 2023, with its operating revenue witnessing a surge of 93.4% to Rs 323 crore from Rs 167 crore in FY22, Entrackr reported.  

Despite the challenges, the startup has effectively managed its losses, setting a hopeful tone for profitability in the upcoming fiscal year.

Expanding global presence 

The startup, which is known for its comprehensive employee engagement and experience solutions, has expanded its reach to 1,000 clients across 100 countries.

Interestingly, The expansion has been paralleled by a significant growth in its user base, which doubled to 4 million in less than 15 months. Founded in 2014 by Smiti Deorah and Sourabh Deorah, Advantage Club's offerings include rewards, recognition, flexible benefits, wellness, onboarding, and more, catering to a diverse range of employee needs.

Revenue streams

A significant portion of Advantage Club's revenue, 91.5%, is attributed to voucher sales, which soared by 92% to Rs 297 crore in FY23. The remainder was generated from the sale of services, discount income without product margin, and brand breakage.

However, the procurement of vouchers, forming the largest cost centre, accounted for 92% of the total expenditure, highlighting the challenges in managing costs while scaling operations.

Funding and investors

According to CrunchBase data, Advantage Club has raised over $6.7 million in its five funding rounds to date. Some of its notable investors include Acequia Capital (AceCap), Kunal Shah (Founder of CRED), Eastlink Capital, Kube VC, Y Combinator, Jetty Ventures, and Broom Ventures, among others. 

In November 2021, The startup raised $5 million as part of its pre-Series A funding round.