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Breaking Boundaries: CASHe's Meteoric Rise in Fintech

Fintech company CASHe has demonstrated remarkable growth in the fiscal year ending March 2023, with its revenue soaring to over Rs 560 crore, marking a significant increase from Rs 257.5 crore in the previous fiscal year. Despite this impressive growth, the Mumbai-based firm experienced a slight dip in profits as it focused on expanding its operations.


Led by V Raman Kumar, CASHe specializes in offering personal loans and credit lines through its mobile application, catering primarily to millennials and Gen Z in India. Alongside its core lending services, CASHe diversified its offerings by venturing into the wealth management sector with the acquisition of Sqrrl, a wealthtech platform, in May 2022.

The company's revenue is predominantly driven by interest on loans, which accounted for 93% of its total collections. Additionally, CASHe generated income through non-operating channels, earning Rs 17.16 crore from interest and gains on financial assets. Consequently, its total income for the fiscal year stood at Rs 577.75 crore.


However, CASHe also faced escalating costs during this period. Finance costs, including interest paid on borrowings, surged to Rs 122 crore, representing a significant increase from Rs 45.2 crore in the previous fiscal year. Moreover, expenditures on advertising, promotional activities, and employee benefits witnessed substantial growth.


Despite the company's efforts to scale up its operations, its bottom line was affected by rising expenses. Profits declined by nearly 7% to Rs 26.3 crore in FY23 compared to the previous fiscal year. The increased expenses also led to a rise in cash outflows from operations, which reached Rs 454 crore, marking a 47.4% increase from the previous fiscal year.

CASHe's EBITDA margin deteriorated to 27.65% during the last fiscal year, reflecting the impact of escalating costs on its profitability. On a unit level, the company spent Re 0.97 to earn a rupee of operating revenue in FY23.

Despite these challenges, CASHe has garnered significant funding, raising approximately $38 million to date. This includes a substantial equity funding of Rs 140 crore from its Singapore-based holding company, TSLC Pte Ltd, in January 2022.

For a comprehensive breakdown of expenses and a detailed analysis of CASHe's financial performance year-on-year, interested parties can refer to the startup intelligence platform


 

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