Neblio Technologies, the Indian arm of CoinDCX, has achieved a significant financial turnaround in FY23. From a net loss of Rs 41 crore in the previous fiscal year, the company reported a net profit of Rs 28 crore.
Revenue and expense dynamics
Despite a decrease in total revenue from Rs 588 crore in FY22 to Rs 456 crore in FY23, Neblio Technologies reduced its total expenses. According to media report, The expenses dropped from Rs 630 crore in FY22 to Rs 429 crore in FY23. This reduction in expenses played a crucial role in the company's journey to profitability.
A closer look at the company's expenses reveals mixed trends. Employee benefit expenses saw a significant increase, rising from Rs 51 crore in FY22 to Rs 178 crore in FY23.
However, operating expenses and other expenses witnessed a substantial decrease. Operating expenses were down to Rs 67 crore from Rs 185 crore, and other expenses more than halved to Rs 180 crore from Rs 391 crore in the previous fiscal year.
Incentivizing crypto transfers
CoinDCX recently announced an initiative to encourage users to transfer their assets to the platform from offshore or non-compliant exchanges. The company is offering a 1% bonus for such transfers, allocating up to $1 million from its treasury for this purpose. This bonus is applicable to crypto deposits made between January 9 and January 17 of this year.
Regulatory compliance efforts
The development follows actions by the Financial Intelligence Unit (FIU) against foreign crypto exchanges like Binance and KuCoin for non-compliance with anti-money laundering laws.
The FIU has recommended the Ministry of Electronics and Information Technology to block the URLs of nine entities that are operating in violation of the Prevention of Money Laundering (PML) Act in India. CoinDCX's move aligns with the broader regulatory efforts to ensure compliance within the crypto industry.
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