SaaS-based logistics management startup FarEye's FY23 revenue jumps 42% to Rs 139Cr

SaaS-based logistics management platform FarEye recorded a 42% year-on-year growth in the fiscal year that ended in March 2023, Entracrk reported.

Despite this growth, the company faced significant financial challenges. FarEye's revenue from operations increased from Rs 98 crore in FY22 to Rs 139 crore in FY23, according to its consolidated financial statements filed with the Registrar of Companies (RoC).

Revenue sources and investments 

FarEye provides software solutions to manage the supply chain and delivery logistics for various sectors, including manufacturing and e-commerce. 

The startup's revenue primarily comes from the sale of these logistic services. Additionally, a $150 million investment round allowed FarEye to generate Rs 27 crore from interest on investments, pushing its total revenue to Rs 166 crore for FY23.

Expenditure analysis

The bulk of FarEye's expenses came from employee benefits, which accounted for 61.2% of its total expenditure. Employee costs saw a modest increase of 8%, rising to Rs 251 crore in FY23 from Rs 232 crore in FY22.

Other costs such as IT, travel, legal, advertising, and overheads drove FarEye's total expenditure to Rs 410 crore in FY23, up from Rs 361 crore in FY22.

Financial health and valuation

Despite efforts to manage expenses, FarEye's losses increased slightly by 4.7%, reaching Rs 243 crore in FY23. The firm's return on capital employed (ROCE) and EBITDA margin were recorded at -60% and -142.2%, respectively.

Notably, on a unit level, FarEye spent Rs 2.95 to earn a rupee in FY23. The company’s total current assets, including investments and cash/bank balances, were valued at Rs 438 crore, the report said.

So far, FarEye has raised over $150 million in funding from investors, including TCV, M12 Microsoft's Ventures Fund, Eight Roads Ventures India, Honeywell Ventures, Fundamentum, and SAIF Partners, among others.