Apartment management solution provider MyGate has demonstrated significant growth during the previous two fiscal years. It’s one of the few startups which managed to grow without raising venture capital money for nearly four years. The Bengaluru-based firm also cut losses to the tune of 35%.
MyGate’s revenue from operations ramped up 77.3% to Rs 71.10 crore in FY23 from Rs 40.1 crore in FY22, according to its annual financial statements filed with the Registrar of Companies. The company grew 8.4x when compared to FY21 results.
MyGate generates income through subscription revenue from resident welfare associations, etc, and revenue from brands promoting themselves on the MyGate app. The remaining collection comes from the consumer sector (B2C) which encompasses direct services offered to residents. These services notably include facilitating the payment of utility bills and other maintenance expenses.
The company also has an interest income (non-operating) of Rs 6 crore during FY23, as per the filings.
Employee benefits accounted for 30% of the overall cost which declined by 14.4% to Rs 91.34 crore during the preceding fiscal year. According to the document, this cost includes Rs 11.74 crore as ESOP which is a non-cash expenditure. Its cost of materials was also reduced by 49.7%.
The seven-year-old firm registered an expense of Rs 139 crore against net loss on financial liabilities, according to the Indian Accounting Standards 32. This non-cash expenditure formed 45.7% of the overall cost in the last fiscal year (FY23).
With decent growth and controlled expenditure during the previous fiscal year, MyGate managed to contract its loss by 35.3% to Rs 76.43 crore in FY23. (we have ignored the loss of financial liabilities and ESOP cost while calculating the losses as they were non-cash in nature).
In October 2019, MyGate raised $56 million in a Series B round. Later, it raised strategic money worth $12 million from home service marketplace Urban Company and insurance provider Acko in November last year. Entrackr exclusively reported the development. As a part of the deal, Acko will partner with the company to extend security while Urban Company will bring home services to MyGate’s users.
The topline growth indicates how deeply, and well rehearsed MyGate’s pitch to apartment owners/RWAs has become. The firm has effectively solved the issues of privacy by delivering a strong suite of services and technology that has delivered on its promise. The challenge now would be to deliver services that can deliver margins, and at scale. That could lead the firm down a road to more funding requirements and a longer runway to profits, or a quicker partnership led model where it collects fees as an enabler. But finding the right partners in the latter case is no easy job, and we won’t be surprised if the firm chooses to go it alone.
