Fintech startup WeRize reports 246% growth in its revenue to Rs 68.1 crore in FY23

British International Investment-backed fintech startup WeRize has reported a staggering 22X increase in its revenue over the last two fiscal years.

According to an Entrackr report, the significant growth has been particularly noted in smaller cities, where the startup has established a strong foothold. From FY21 to FY23, WeRize's operating scale soared from Rs 3.2 crore to Rs 68.14 crore.

Revenue sources

For FY23, WeRize's revenue from operations jump 3.46X to Rs 68.14 crore from Rs 19.68 crore in FY22. A substantial portion of this revenue, approximately 84.85%, came from interest and service fees, with interest earnings at Rs 33.49 crore and loan processing fees contributing Rs 24.33 crore.

Additionally, the company earned Rs 4.63 crore from non-operating activities, bringing its total income to Rs 72.77 crore for FY23.

Expenditure and efficiency

Despite a 2.5X surge in expenses, WeRize managed to reduce its losses by 23.8% in the last fiscal year. The company's expenditure rose to Rs 80.9 crore in FY23, up from Rs 31.9 crore in FY22, with employee benefit expenses accounting for 34.98% of the total.

However, the company's Return on Capital Employed (ROCE) and EBITDA margin showed significant improvement, indicating enhanced operational efficiency.

Funding and investors 

In June 2022, WeRize raised Rs 120 crore in funding from British International Investment (BII) and Sony Innovation Fund. Existing investors — 3one4 capital, Kalaari Capital, Picus Capital and Orios Venture Partners — had also participated in the round.

So far, It has raised over $25 million in funding at a valuation of over $100 million.