Tata Capital-backed HRtech startup ZingHR's FY23 revenue jumps 51% to Rs 84.5Cr

HRtech startup ZingHR has reported a significant revenue increase in the fiscal year ending March 2023. The startup's revenue from operations saw a 51% jump, reaching Rs 84.48 crore, up from Rs 55.77 crore in the previous fiscal year.

According to an Entrackr report, the growth is attributed to its subscription-based software sales, which surged by 51.48% during FY23. Despite this increase, ZingHR's losses have also seen a sharp rise, nearing Rs 21 crore, marking an 84.4% jump from the previous year.

Expanding global footprint 

ZingHR claims to have over 1,100 worldwide customers and more than two million active users across eight countries. The platform offers a comprehensive suite of solutions, including recruitment, payroll, employee management, and talent management, catering to a diverse clientele.

A look at expenditures 

The company's financial health is further detailed by its expenditure patterns. Employee benefits expenses, a significant portion of the overall expenditure, accounted for 55.52%, rising 48% to Rs 59.2 crore in FY23.

Additionally, marketing, product maintenance, and other overheads led to a 61.5% increase in total expenditure, reaching Rs 106.69 crore. This surge in expenses has contributed to the company's growing losses.

Funding and investors 

ZingHR has raised approximately $13 million to date, with Tata Capital being the largest external stakeholder, holding a 35.82% share. Other notable investors include the Erasmic Venture Fund and Triton Fund. Despite the high stakes of Tata Capital in ZingHR, the startup faces stiff competition in a cluttered HR tech market.