Cashfree Payments' revenue jumps 4.7% to Rs 643 crore in FY24; continues to operate in loss

Cashfree Payments, a key player in the digital payments sector, reported a modest 4.7% increase in revenue for the fiscal year ending March 2024. Revenue from operations rose to Rs 642.7 crore, up from Rs 613.8 crore in FY23.

Revenue composition and operational highlights

The company’s earnings report, filed with the Registrar of Companies, highlighted that all revenue stemmed from transaction-based fees and business services.

Cashfree primarily earns through fees associated with payment and disbursement transactions. Despite the limited growth in revenue, the Bengaluru-based company managed to keep its operations steady.

Non-operating income, which included earnings from bank deposits and income tax refunds, contributed minimally at Rs 2.1 crore. The total revenue, including non-operational income, reached Rs 644.8 crore in FY24.

Rising costs and employee expenses

Cashfree’s major cost centre remained consistent, with material costs at Rs 426.6 crore, the same as in the previous fiscal year.

However, employee benefit expenses increased significantly by 23%, reaching Rs 245 crore in FY24. Other operational expenses, including the merchant discount rate (MDR), infrastructure costs, and compliance fees, added to the overall expenditure.

The total expenses for the fiscal year amounted to Rs 779.43 crore, marking a slight increase compared to the previous year.

Funding and investors

The company reported a loss of Rs 135 crore in FY24, only slightly higher than the Rs 133 crore loss reported in FY23. 

Since its inception in 2013, Cashfree has raised around $42 million. However, the company has not secured new funding since June 2021, when it concluded its Series B funding round with $35 million. SBI, Apis Partners, CABRA VC, and Trifecta Capital Advisors are some of its notable backers. 

Last week, the company secured the Reserve Bank of India’s (RBI) Prepaid Payment Instrument (PPI) license.