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Pocketly records a 2X rise in topline in FY23, profits surge

  • September 30, 2024
  • By Team TheKredible
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Microlending platform, Pocketly posted a 2X rise in revenue for FY23, reaching Rs 19.39 crore from Rs 6.98 crore in FY22.

Founded in 2019 by Aarav Bhatia and Navdeesh Ahuja, Pocketly offers quick, short-term loans for young adults and college students through a fully digital and automated process. The platform aims to empower young people by providing alternative credit products and helping them build strong credit profiles before they enter the broader financial world.

The fintech startup claims to serve over 100K borrowers and disburse more than Rs 250 crore annually.

The Bengaluru-based company has raised a total of Rs 26.02 crore in funding across 6 rounds, with the latest debt financing round led by Dholakia Ventures in March 2022. The company is currently valued at over Rs 50 crore.

Competing with Kreditbee and Stashfin, Pocketly’s majority shareholder is Incred, holding around 50% stake. Other key shareholders include Cybri Infotech, Aarav Bhatia, Navdeesh Ahuja, and Dholakia Ventures.

In line with its revenue growth, Pocketly’s expenses rose to Rs 6.40 crore in FY23 from over Rs 1 crore in FY22. Employee benefit costs accounted for the largest portion of these expenses at over 40%, followed by legal and professional charges, depreciation, and advertising expenses.

Despite the rise in expenses, the company recorded a notable profit increase, climbing from over Rs 3 crore in FY22 to Rs 9.73 crore in FY23.

With these financial improvements, Pocketly’s current EBITDA declined to 67.73%, while its ROCE has increased to 55.59%.