PC: Entrackr
The community management app MyGate has come up with very impressive financial results for the fiscal year 2024. The operating revenue has achieved a 35% growth year-on-year. Moreover, it managed to cut down the loss by over 82% and showed sound financial management to recover itself well.
According to the consolidated financial statement of the company filed with the RoC, the operating income of MyGate soared by ₹96.2 crore in FY24 from ₹71.1 crore in FY23. Brand advertisements from the lion’s share of revenue generated by the company, followed by subscription for its SaaS products. The other revenues for MyGate have been accounted for at ₹12.9 crore, so that the company’s revenue from operations stood at an all-time high of ₹109.1 crore for the year ending March 2024.
MyGate has designed its app to make everyday community interactions seamless by ensuring higher security for residential communities. Residents can view the visitor entries and exits on the app and also talk to their neighbors, monitor attendance of their domestic helps, and make payments for society maintenance charges directly from the app. In a strategic expansion of its offerings, MyGate launched smart locks in September 2024, entering the integrated platform of select consumer devices. This development is in line with the company’s focus on modern security solutions, reinforcing its position in the smart home market.
On the cost side, operating expenses at MyGate reduced 12.8% at ₹129.5 crore against ₹148.5 crore in FY23. Employee costs, excluding an Employee Stock Option Plan-related cost, declined by 16.5% at ₹66.4 crore. Material consumed expenses were at ₹1.6 crore with a significant drop of 27.3%. Other operating expenses comprise ₹61.5 crore, which is down by 7.8% from ₹66.7 crore for the last fiscal.
In the said period, the company cut down its losses by 82.4%. It has reported a loss of ₹39.8 crore in the current fiscal year FY24. Against FY23 when losses were at ₹226.4 crore. Thus, such decreases indicate that there are more opportunities to make profitability happen on the other side of MyGate, despite issues being there for it in generating revenues on visitor approvals for gated communities and their related security issues.
Interestingly, MyGate achieved the revenue milestone of ₹100 crore without raising any external fund in FY24. The company had earlier raised $56 million in the Series B funding in October 2019 and then strategic investment of $12 million from Urban Company and insurance firm Acko in November 2022 after a three-year gap.
By the end of FY24, MyGate established an ESOP that will take benefit of over 50 employees. The company promoted co-founder Abhishek Kumar to CEO, giving a signal that the growth and development of internal leaders are being considered.
Despite the positive growth, MyGate still remains a long way in seeking profitability. The price-conscious Indian consumer is very particular and creates a distinct difficulty, especially when trying to expand the service scope for the company. Cut-cost measures and strategic focusing on higher-margin products present evidence of careful navigation on demands in the market.
Overall, MyGate has drastically impacted the landscape of community management. With such innovation, it is indeed on a platform to keep shaping the future of residential security and management. With its new services, the company hopes for appropriate rewards for its efforts in the foreseeable future.
