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WeRize Witnesses Remarkable 22X Revenue Surge Over Last Two Fiscal Years

WeRize, a fintech platform backed by British International Investment, has demonstrated remarkable growth in recent years, particularly evident in its financial performance over the last two fiscal periods. Founded five years ago by Vishal Chopra and Himanshu Gupta, the company has experienced a staggering 22X increase in its operating scale, with operating revenue soaring to Rs 68.14 crore in FY23 from Rs 3.2 crore in FY21.


In a noteworthy year-on-year comparison, WeRize witnessed a 3.46X rise in revenue from operations, reaching Rs 68.14 crore in the fiscal year ending March 2023 from Rs 19.68 crore in FY22, according to consolidated financial statements sourced from the Registrar of Companies.

The core revenue streams for WeRize primarily stem from interest and service fees, which collectively accounted for 84.85% of its total operating revenue. The company generated Rs 33.49 crore from interest and Rs 24.33 crore from service fees, contributing significantly to its overall income of Rs 72.77 crore in FY23.


However, as with many lending startups, WeRize experienced a surge in expenses. Employee benefits formed a significant portion, comprising 34.98% of the overall expenditure, which increased by 125.9% to Rs 28.3 crore in FY23 from Rs 12.53 crore in FY22. Professional consultancy fees, commissions, subscription fees, performance payouts, and other overheads also contributed to the rise in expenditure, climbing by 153.6% to Rs 80.9 crore in FY23 from Rs 31.9 crore in FY22.


Despite the substantial increase in expenses, WeRize managed to reduce its losses by 23.8% to Rs 8.23 crore in the last fiscal year. Moreover, its Return on Capital Employed (ROCE) and EBITDA margin showed significant improvements, reaching -2% and 2.5%, respectively. On a unit level, the company spent Rs 1.19 to earn a rupee in FY23.

WeRize secured $15.5 million in funding in June 2022, valuing the company at $108 million post-money. Key investors include Kalaari Capital, holding 16.09% in the firm, along with 3one4 Capital and Orios Venture Capital, holding 13.46% and 10.18%, respectively.


Looking ahead, WeRize appears poised to achieve break-even in FY24. However, questions loom regarding its ability to sustain its growth momentum amidst an increasingly competitive market landscape. Nevertheless, the potential within the underserved lower-income segment, particularly for insurance products, remains vast. Effectively navigating these challenges and building a compelling narrative of use cases will likely define WeRize's immediate and long-term trajectory.


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