Cashfree Payments, a digital payments and fintech services startup, reached a $200 million valuation after raising funds from the State Bank of India in June last year. During the 2020-2021 period, the company claims to have seen a 150 percent increase in its user base.
While the company is controlled by its US-based holding company Cashfree Inc, its Indian operations are managed by Cashfree Payments India, and we looked at its annual numbers to see how it grew during the pandemic year.
Cashfree Payments saw a 2.3X increase in revenue from operations in FY21, from Rs 99.6 crore in FY20 to Rs 227.33 crore in FY21. The majority of the company’s revenue came from commissions charged to vendors who used its payment gateway services, which totaled Rs 227.29 crore, while setup fees collected from users were only Rs 3.71 lakhs.
The Bengaluru-based company provides a variety of payment services to vendors, including payment collection, auto collect, recurring payments, and bank verification. Payment Gateway costs are the company’s most significant outlay, accounting for just over 70% of its annual expenses. The surge in payment gateway costs, which increased by 126.3 percent from Rs 60.1 crore in FY20 to nearly Rs 136 crore in FY21, demonstrates the expansion in scale of operations.
Employee benefit costs were the fintech firm’s second-largest cost centre, accounting for around 22% of annual costs. Cashfree Payments’ employee base grew in tandem with its scale, and costs increased 3.15X to Rs 42.62 crore in FY21 from Rs 13.5 crore the previous year.
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