Proptech unicorn NoBroker’s FY23 revenue climbs 87%, reports Rs 506 crore loss

Bengaluru-based proptech unicorn NoBroker has reported an impressive 86.8% increase in its revenue from operations for the fiscal year ending March 2023.

The startup's revenue grew from Rs 326 crore in FY22 to Rs 609 crore in FY23, according to its financial statements sourced from the Registrar of Companies. However, this growth in revenue was accompanied by a significant increase in losses.

Its losses surged by 63.8% to Rs 506 crore in FY23, up from Rs 309 crore in the previous fiscal year.

What led to the increase in expenses?

NoBroker's total expenses saw a sharp rise of 75.2%, reaching Rs 1,190 crore in FY23 compared to Rs 679 crore in FY22. A significant portion of these expenses, amounting to 36.55% or Rs 435 crore, was attributed to employee benefits, which saw a 66% increase from the previous year.

Other overhead costs, likely covering areas such as advertising and payment gateways, contributed another Rs 724 crore. These rising costs overshadowed the company’s revenue growth, leading to a considerable increase in overall losses.

What additional income did NoBroker earn?

In addition to its operating revenue, NoBroker recorded a non-operating income of Rs 74 crore in FY23, derived from interest on fixed deposits and gains from current investments and mutual funds. This brought the company’s total income to Rs 683 crore for the fiscal year.

Despite this additional income, the substantial rise in expenses led to a significant widening of the company’s losses.

What does NoBroker do?

Founded in 2014 by IIT alumni Akhil Gupta, Amit Kumar Agarwal, and Saurabh Garg, NoBroker offers a variety of real estate solutions, including rental agreements, home insurance, property management, and more.

So far, the startup has raised over $400 million in funding from investors, including General Atlantic, Moore Strategic Ventures, Tiger Global Management, and Rocketship.vc.

Despite the broadening of its services and a push towards leveraging artificial intelligence, profitability remains a challenge for NoBroker.

NoBroker had previously aimed to achieve Rs 1,000 crore in revenue by FY24. However, with its increasing expenses and widening losses, this goal presents significant challenges.