Whatfix nears unicorn status with 49% revenue surge

SaaS startup Whatfix has reported an impressive growth of 49.1% for the fiscal year ending March 2024, alongside a 20% reduction in year-on-year losses. According to its consolidated financial statement filed with the Registrar of Companies, Whatfix’s revenue from operations reached Rs 424.58 crore, up from Rs 284.74 crore in FY23.

This growth has been fuelled by an expansion of services, particularly in international markets. The company also reported non-operational income of Rs 20.77 crore, bringing its total income for FY24 to Rs 445.36 crore.

Based in Bengaluru, Whatfix primarily generates revenue through software subscriptions and professional services that help customers utilize its platform effectively throughout the contract period. These services are offered on a subscription basis.

The United States has emerged as Whatfix's largest revenue source, contributing 72.13% of total earnings. Revenue from the U.S. surged by 77.4%, climbing to Rs 306.23 crore in FY24 from Rs 172.66 crore the previous year. Meanwhile, revenue from Europe reached Rs 90.61 crore, and the Middle East contributed Rs 6.89 crore.

However, as Whatfix expanded, its expenses also rose, with employee benefits accounting for the largest portion at Rs 450.65 crore. Other significant expenditures included Rs 230.55 crore in operational costs, which increased by 27% year-on-year. On a positive note, finance costs decreased dramatically by over 79%, falling to Rs 31.1 crore due to a reduction in certain liabilities.

Despite the 49% revenue growth, Whatfix successfully reduced its losses by 20%, bringing them down to Rs 262.63 crore. This improvement, along with increased revenue, highlights the company’s strategic focus on cost efficiency and its revenue-generating services. The adjusted bottom line was also positively impacted by the absence of one-time costs that affected previous fiscal results.

In September, Whatfix secured $125 million in a Series E funding round led by Warburg Pincus, with participation from SoftBank Vision Fund 2. Co-founded by Khadim Batti and Vara Kumar, the company has raised over $265 million to date, and its valuation now stands at approximately $900 million, edging closer to unicorn status.