Setu has recorded operating revenue of Rs 3.31 crore in FY21
The entire income comes from the sale of the service
Fintech infrastructure startup Setu has expanded its services to include payments, data, investments, and lending via its automated programming interface (APIs). Google Pay teamed with the company in August to provide Equitas Small Finance Bank fixed deposits.
While the Lightspeed-backed startup has been growing at a reasonable rate, it appears to be at the pre-revenue stage in terms of revenue in FY21. Setu reported operating revenue of Rs 3.31 crore in FY21, compared to zero in FY20. Setu is in its second full fiscal year of operation. The full revenue is generated by the selling of the service.
The Bengaluru-based company received Rs 5.74 crore as other income from interest on bank deposits in FY21, a 334 % increase over FY20. At the start of FY21, the company raised a $15 million (Rs 110 crore) Series A round.
Setu spent 228 % more in FY21, at Rs 27.96 crore, compared to Rs 8.52 crore in FY20, to earn this operational revenue. Setu’s expenses were 84 % salary and other employee benefit schemes, following the B2B template for its age. This cost increased 254 % in FY21, from Rs 6.63 crore in FY20 to Rs 23.51 crore in FY21.
While the pandemic had a significant effect on a range of companies across industries, Setu is unlikely to have suffered a significant setback because it is a digital infrastructure company in a rapidly changing and rising industry. To that point, the firm’s focus in year 4 will be on faster product rollout while still attempting to manage burn. Of course, with the correct product portfolio and technological chops, the company will always be a contender for acquisition by a major group or firm looking to develop a financial marketplace.
