Digital marketing firm LS Digital's FY23 revenue jumps 35% to Rs 696 crore

Digital marketing firm LS Digital, previously known as Logicserve, has reported impressive growth in the fiscal year ending March 2023. The company's profits soared more than threefold compared to the previous fiscal year. 

Additionally, Its revenue jumped 35.1% compared to the year before, climbing to Rs 696 crore in FY23 from Rs 515 crore in FY22.

Revenue streams and cost management

The majority of LS Digital's operating revenue, approximately 94.8%, was generated from marketing services, witnessing a 42.2% increase to Rs 660 crore in FY23.

The company specializes in a wide range of marketing technology services, including advertising, communication, SEO, and SEM, catering to the evolving needs of digital marketing. 

Despite advertising and promotional costs being the largest expenditure, accounting for 83% of the total costs, the firm managed to efficiently control its spending, resulting in an expenditure of Rs 669 crore in FY23, up from Rs 508 crore in FY22.

Profitability and operational efficiency

LS Digital's strategic approach to cost management and its ability to scale operations effectively led to a substantial increase in profits by 3.36 times, reaching Rs 18.4 crore in FY23.

The company also saw improvements in its Return on Capital Employed (ROCE) and EBITDA margins to 20% and 3.2%, respectively. 

Funding & Investors  

Headquartered in Mumbai, LS Digital has been cautious with its equity, raising over Rs 140 crore to date and ensuring minimal dilution since its inception. The startup's founding team retains over 80% of the stake, according to The Kredible.

Florintree Advisors, Mahesh Pratapneni, Pallab Chatterjee, and Bhupinder Singh are some of its backers.