Darwinbox, an HRTech SaaS firm, reported a 58 per cent Year-on-Year (YoY) revenue increase for FY24, reaching Rs 392 crore, fuelled by international expansion and the integration of Artificial Intelligence (AI)-powered tools into its product offerings.
Jayant Paleti, Co-founder, Darwinbox, emphasised that innovation and global outreach were pivotal in achieving this growth. Over the past two years, the company’s revenue has surged 3.2 times, driven by an 87 per cent rise in international revenue.
Darwinbox’s strategic focus on global markets, particularly in North America, Southeast Asia and the Middle East, contributed over 50 per cent of new Annual Recurring Revenue (ARR) in FY24. The firm also invested 46 per cent of its operating revenue in Research and Development (R&D), leading to AI-driven product innovations, including a global payroll product to be launched in seven countries next year.
Despite the growth, the company remains unprofitable, though its financial efficiency has improved. Darwinbox reduced its operating cash burn by 12 per cent in FY24 and saw a 17-percentage point improvement in its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin. However, profitability is not an immediate concern as the company prioritises long-term growth through R&D and expansion.
A large portion of Darwinbox’s revenue came from existing customers, with 25 per cent of new revenue generated through additional services. Its Net Revenue Retention (NRR) rate stood at 110 per cent, showcasing strong customer satisfaction.