AI-powered consumer research platform, Entropik, recorded a 2X increase in revenue in FY23 rising to Rs 47.53 crore compared to Rs 16.39 crore in FY22.
Founded in 2016 by Ranjan Kumar and Bharat Shekhawat, Entropik enables real-time measurement and optimization of customer experience, user experience, market and consumer research. The company uses artificial intelligence and machine learning to analyze human emotions.
The Bangalore-based AI startup has raised a total of Rs 274.69 crore over 5 funding rounds. The latest funding round being a series B round raised in february 2023, led by Bessemer Venture Partners and SIG Venture Capital. The company currently stands at a valuation of over Rs 400 crore.
Competing with companies like Arya.ai and Mihup, the majority shares of Entropik are held by Ranjan Kumar at over 25%, followed by Bharat Innovation Fund, which holds more than 20% stake in the company. Alpha Wave Incubation and SEA Global Services also hold significant shares, with around 10% reserved for the company’s ESOP pool.
In line with revenue rise, the company’s expenses also surged, reaching Rs 74.55 crore in FY23 from over Rs 30 crore in FY22. Employee benefit costs accounted for the largest share, over 40% of total expenses, followed by advertising, legal, and professional charges, which also contributed significantly to the expenses.
Despite the revenue rise, the company’s losses widened by 52%, growing to Rs 27.02 crore in FY23 from over Rs 15 crore in FY22.
Entropik’s current EBITDA margin and ROCE improved to -50.13% and -14.21%, respectively.