MyGate has become one of the interesting products in last year and it has raised $56 million in a round led by Tencent and Tiger Global. MyGate is a security management and convenience service for guard-gated apartments.
In the ongoing fiscal, the company can register an outstanding growth. It registered 3.9X growth in operating revenue in FY19 to Rs 5.83 crore from Rs 1.51 crore in FY18.
According to its annual financial report, the Bengaluru-based firm has burnt 5.6 times more cash amounting to Rs 32.32 crore in FY19 when compared to Rs 5.77 crore in FY18. Out of the total expenditure, employee benefits expense alone stood at Rs 20.45 crore. It recorded a 5.8 times jump in FY19 from Rs 3.51 crore in the preceding fiscal.
The other employee-related expenses (part of an overall employee benefits expense) increased 51.5 times to reach Rs 7.6 crore as compared to Rs 14.74 lakh in FY18.
Another large expanse was incurred on the cost of materials consumed by the company to procure and manufacture the security devices for its products. It spent Rs 5.35 crore in it.
To reach to large group of people, the company spent Rs 1.3 crore on advertisement and promotions in FY19, up 7.6 times from Rs 17.12 lakh it spent for the same in FY18. Meanwhile, unexplained miscellaneous expenses amounting to Rs 2.4 crore, increased by 13 times from FY18.
MyGate’s financials shows an increased spending due to the funding it received and also reflect the corresponding growth in its revenue figures. At the end of the year ending March 2019, the company’s net loss ballooned by 9.3X to Rs 25.33 crore from Rs 2.73 crore in the previous fiscal.
MyGate’s fixed assets increased by 5.5X to Rs 2.05 crore in FY19 from Rs 0.37 crore in FY18. Its total assets jumped by 4.7 times to Rs 69.3 crore from Rs 13.73 crore in the previous fiscal.
Last year was momentous for MyGate. It raised a hefty Series B round in October 2019 and claimed to handle 45 million check-in requests a month. Around the same time, the company had said that its product was used by more than 1.2 million homes across 11 cities.
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