Since the last fiscal year, the Oxyzo Company caught the eyes of folks! Reason? Oxyzo revenue and profits! Yes, it became famous for being one of the top 10 profitable startups in the country. It began its journey as a startup to provide financial solutions to small and medium enterprises, mainly serving the manufacturing sector.
Oxyzo is a financial arm of OfBusiness which is a B2B commerce marketplace. It was founded by Asish Mohapatra in 2016. This unicorn crossed the remarkable revenue mark of Rs.570 crore in FY23. What about the profits? You may ask. Unlike the majority of Indian startups, Oxyzo’s profits increased significantly along with its revenue. How much? By three times (3X)!
How did it earn massive revenue and profits despite the gloomy market conditions? You may wonder.
Go through this write-up and you will get to know it all!
Oxyzo Revenue Breakdown
Before jumping into the revenue breakdown of the fintech startup, let’s have a brief look at how it works. Being a financial arm of the industrial goods and services company (OfBusiness), it provides credit solutions and loans to SMEs. Do you know Oxyzo works with more than 10k small and medium enterprises in India? Thus, the money earned from interests on loans along with commissions form major Oxyzo revenue sources.
Oxyzo earned revenue of Rs.570 crore in FY23 whereas in FY 22 it earned Rs.313 crore. The revenue increased by 82.1% from the last fiscal year.
Let’s compare the Oxyzo revenue from the last two fiscal years-
|Interest Income||Rs.537 crore||Rs.298.4 crore|
|Fees and Commission||Rs.24 crore||Rs.13.4 crore|
|Other Operating Income||Rs.9 crore||Rs.1.2 crore|
As per the data, it is clear that Oxyzo revenue nearly doubled in FY23 as compared to its predecessor. Also, the company gets sufficient funding from its investors. We have already explained Oxyzo funding, valuation, and shareholders’ breakdown. For more information, you can go through that article.
Let’s return to the Oxyzo revenue and its financials. All of us are aware of the simple fact that how a company becomes profitable. If the money spent on the expenditure is lower than the revenue earned. Then the company will be profitable by default!
That’s the same case with Oxyzo. In the next section, you will get info about its expenses.
As mentioned before, Oxyzo’s expenses were under control and didn’t cross the threshold value. Let’s have a brief look at the expense breakdown of Oxyzo in the last two fiscal years-
|Expenses||Amount Spent in FY23||Amount Spent in FY22|
|Finance Cost (Interest)||Rs.183.3 crore||Rs.143 crore|
|Employee Benefits||Rs.78 crore||Rs.45.8 crore|
|Impairment on Financial Instruments||Rs.27.7 crore||Rs.13.7 crore|
|Other Expenses||Rs.20.04 crore||Rs.15.5 crore|
The total expenses in FY23 were Rs.309 crore. It managed to control its expenses. And this was the secret to its humongous profits.
The finance cost i.e. interest was the largest expenditure of Oxyzo. It accounted for nearly 59.3% of the total expenses of the company i.e.143 crore. The runner up in the race of expenses was expenditure on “Employee Benefits” worth Rs.78 crore.
However, the money spent on “Impairment on Financial Instruments” nearly doubled in this fiscal year. Last year, its cost was 13.7 crore. Whereas it rose to Rs.27.7 crore in FY23.
Financials of Oxyzo
The financials of the company Oxyzo is summarized in the following table-
|Oxyzo Financials (FY23)||Amount (in crores)|
|Market Valuation||Rs.1,640 crores ($963 million)|
|Revenue Earned||Rs.570 crore|
|Profit/Loss||Profit of Rs.197.3 crore|
This table is clear enough to represent the profitability of the company Oxyzo due to high revenue and lower expenses. Thus, Oxyzo revenue doubled while profit grew at 3X to Rs.197 crore in FY23!
Future Plans of Oxyzo
Oxyzo’s financials including its revenue and profits are quite impressive. It represents the efficiency of its business model as it continued to make profits for the last three years. Till now, it didn’t lose the position of being one of the top 10 profitable startups of India. Profitability is an essential factor to earn the trust of VCs, investors, and customers.
Although it started as a financing platform soon after it expanded by a diversified products suite with a larger customer base including SMEs and mid-corporates to thrive in the modern economy.