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Upstox’s FY21 net loss doubles as personnel costs weigh on other expenses

By on February 16, 2022 0

Online securities brokerage firm Upstox’s net loss doubled for 2020-21 (FY21) as the company’s benefit costs and other expenses soared during the year, the documents show. regulations.

Upstox, managed and operated by RKSV Securities India Pvt Ltd, reported a net loss of ₹71.67 crore for FY21 from ₹37.98 crore a year earlier, according to company filings with the Ministry of Finance. corporate affairs. While the company’s operating revenue jumped over 200% to ₹385.64 crore for the year from ₹124.90 crore in 2019-20 (FY20), its operating expenses jumped nearly 170% to ₹497.32 crore, which weighed on the company’s bottom line.

Upstox’s benefits and other expenses, which include after-sales service expenses, advertising promotional expenses, legal and professional fees, and commissions paid to exclusive sales agents, among other heads, soared. arrow during the year, according to filings.

While benefits costs doubled to ₹65.10 crore, other expenses nearly tripled to ₹426 crore. The company reported numbers on a stand-alone basis. Upstox also has a commodity trading subsidiary called RKSV Commodities India Pvt Ltd.

Rising demand for online brokerage in the pandemic-hit year helped Upstox record strong operating revenue growth. According to data from the National Securities Depository and Central Depository Services, 14.2 million new demat accounts were opened in FY21, nearly triple the 4.9 million in FY20.

Upstox’s closest competitors, Groww, operated by NextBillion Technology Pvt Ltd, and Zerodha Broking Ltd, also reported strong revenue growth for FY21. , recorded a profit of ₹1,122 crore, while Groww became profitable for the first time with a net profit of ₹2.73 crore.

Upstox joined the unicorn club in November last year after raising $25 million in its Series C funding round led by Tiger Global Management. Unicorns are companies with a valuation of more than $1 billion. Previously, the company raised $25 million from Tiger Global Management affiliate Scott Shleifer in 2019. The company also raised $4 million in 2016 in a Series A funding round led by Kalaari. Capital.

Upstox is a discount brokerage platform, founded in 2009 by Ravi Chandran Kumar and Shrinivas Vishwanath. The startup provides products and tools such as web, desktop and mobile trading platforms, as well as application programming interfaces (APIs) for developers. The company offers free delivery trading and fees for advanced methods such as intraday trading, futures and options.