HR-tech startup BetterPlace has showcased remarkable financial performance over the past two fiscal years, with its revenue skyrocketing from Rs 51 crore in FY21 to Rs 523 crore in FY23, marking a tenfold growth.
According to its consolidated financial statements filed with the Registrar of Companies, BetterPlace witnessed a 90% increase in revenue from operations, reaching Rs 523 crore in FY23 compared to Rs 275 crore in FY22.
Established in 2015, BetterPlace offers a comprehensive suite of services covering the entire frontline workforce management spectrum, including discovery, hiring, onboarding, background verification, payroll, upskilling, vendor management, workforce fulfillment, insurance, and credit.
The primary revenue driver for BetterPlace was income from workforce fulfillment services, contributing 91.2% of the total operating revenue, which surged by 2.3X to Rs 477.3 crore in FY23 from Rs 202.29 crore in FY22. Other sources of revenue include onboarding, software licensing, product sales, and non-operating interest income, bringing the total income to Rs 534 crore in FY23.
Employee benefits constituted the largest portion of expenditure for BetterPlace, representing 82.73% of the overall expenditure, which doubled to Rs 551 crore in FY23, including Rs 8.78 crore towards ESOPs.
Various overheads such as procurement, legal, KYC authentication, software, and technology contributed to the total expenditure of Rs 666 crore in FY23, up from Rs 371 crore in FY22.
Despite the rapid growth in scale, BetterPlace managed to contain its losses to Rs 132 crore in FY23 compared to Rs 89 crore in FY22, showcasing a disciplined cost management approach. The company’s ROCE and EBITDA margin were recorded at -182% and -24% respectively, with a unit-level expenditure of Rs 1.27 to earn a rupee in FY23.
Having raised over $90 million across various rounds, BetterPlace boasts significant investments. According to data from TheKredible, Jungle Ventures holds the largest stake in the company with 17.99% shares, followed by Unitus Ventures and 3one4 Capital.
BetterPlace’s strategic positioning and rapid growth indicate a promising trajectory for future expansion, especially with its comprehensive HR SaaS platform and a focus on quality leadership beyond just the founders’ contributions.
