How well Indian startup Darwinbox performed financially in FY23?

What does Darwinbox do?

Darwinbox is a cloud-based integrated HR technology product offering various solutions such as recruitment, payroll, and talent management. The majority of its operating revenue, about 79%, comes from subscription services, which grew 87.4% to Rs 178 crore in FY23.

The startup has reported a 91.5% increase in its revenue from operations from Rs 117 crore in FY22 to Rs 224 crore in FY23.

The report comes after it raised $72 million in January 2022 from notable investors, including TCV, Salesforce Ventures, Sequoia India, and Lightspeed.

Despite this growth, Darwinbox's FY23 saw its losses significantly outpacing its revenue growth. It's revenue from operations saw a 91.5% increase, reaching Rs 224 crore, up from Rs 117 crore in FY22.

A notable aspect of Darwinbox's earnings is the geographical distribution of its income. In the last fiscal year, 71% of its collections were domestic, with the remaining income generated from international markets.

Employee benefits accounted for 55% of Darwinbox's expenses, surging to Rs 222 crore in FY23—a significant jump highlighting the firm's investment in its workforce.

Darwinbox's FY23 costs, including cloud hosting, software, and other overheads, totaled Rs 407 crore, pushing losses to Rs 158 crore from Rs 66 crore in FY22.

The current landscape of the Indian HRTech market

India's HRtech market is growing rapidly, reaching $940 million in 2022 and expected to hit $1,640 million by 2028, growing at a 9.5% CAGR from 2023 to 2028.