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Listed fintech firm Five Star’s scale rises 43% in FY24, profits grow 38%

  • June 20, 2024
  • By Team TheKredible
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Chennai headquartered fintech firm Five Star’s scale for FY24 stood at Rs 2,195 crore. This was an over 43% growth in its top line in FY24 as compared to FY23’s Rs 1,528 crore.

While it saw over 99% of the overall revenue coming in from operations, a majority of its came in from interest income. Net gain on fair value changes contributed over 2%, fee and commission income contributed just about 1% the same year.

The preceding fiscal year, it had also received a sizable amount from interest on loans and interest on deposit with banks.

The V. K. Ranganathan founded company offers small business loans and small mortgage loans with a focus on micro-entrepreneurs and self-employed individuals.

These secured loans are provided to eligible borrowers for their business expansion, new ventures, family needs like education and medical emergencies, and asset creation. Loan amounts range from Rs 1 lakh to Rs 10 lakhs.

The listed fintech’s expenses ballooned 50% to Rs 1,079.5 crore in FY24 as compared to its preceding fiscal’s Rs 724 crore.

While finance costs accounted for more than 43% of this, employee benefit costs and miscellaneous other expenses contributed about 40% and more than 14% respectively.

The platform last secured about Rs 150 crore in a debt round led by Swedfund held in early 2022. A month prior, it raised its Series D round of about Rs 195 crore from the likes of Alpha Wave and Bay Capital.

Post the round, TPG Capital became the company’s largest shareholder holding more than 11% shares. While Lakshmipathy D held close to 11%, Peak XV Partners held a little above 10%.

As for profits, its saw a rise of about 38% to Rs 836 crore in FY24. It had previously generated profits amounting to Rs 600 crore. Staying in positives, its current EBITDA and ROCE stand at 73.30% and 13.61% respectively.