- 8.4x growth in revenue, to ₹71cr (in FY23) from ₹8cr (in FY21)
- Raised 135 crs of funds from Acko & Urban Company and existing investor/s
- Cash burn down by 95% in Q1 of FY24 compared to Q1 of FY23
- Revenue projected to grow 2x YoY in FY24 with breakeven before Dec ’2023
Our Seven Year Journey: From Product-Market Fit to Revenue Focus
Establishing product-market fit (2017-2019)
In January 2017, 25 societies adopted the MyGate solution; they were the first to adopt our novel idea. We played the role of security guards, had constant meetings with Resident Association Members members, and regularly talked to residents, too. The hard work paid off.
We thoroughly understood the customer problem; our product created a delight for residents as they could have real time insight and control on what is happening about their home at the gate of the society. Approving visitors from anywhere and knowing when their househelp entered the community created a joy. We created the perfect blend of security and convenience. From here we cautiously began expanding across Bengaluru, and soon took MyGate to other metros like Mumbai, Pune, Hyderabad and NCR. By the end of 2019, we were cruising toward 5,000 communities using a solution that served not just the society gate, but their ERP needs as well.Shifting gears (2020-mid 2021)
As soon as the pandemic hit, we began rolling out a slew of features designed to help our communities safely navigate the situation. Temperature checks at Gate, Vaccination status updates and many others were introduced as Covid Features on the app. We also worked with numerous partners to safely bring to our residents groceries, medicines and even the newspaper at a time when things were scarce.
The response was phenomenal. Our product metrics were more positive than ever and strong word-of-mouth brought new communities our way at a frenetic speed. Nashik, Zirakpur, Bhilai, Dehradun. Communities everywhere began reaching out.
Over the next 2 years, we grew to 20,000 societies. Hockey-stick growth.
Such upward curves do come at a significant cost. Having achieved our quest for scale, it was time to plug our burn and begin our revenue generation journey to ensure we grew responsibly./Focus on Revenue Generation begins (mid-2021 onwards)
With over 3 million digitally-savvy families using our product, we have the opportunity to build several new businesses. You see these today in the form of products and services such as MyGate Home Services and the MyGate Brand Connect Platform. The former quickly gained traction, prompting two of India’s most successful start-ups to come onboard as strategic partners.
The success of the MyGate Brand Connect Platform is perhaps more interesting.
The Arrival of a Brand Partner: With a large, premium and verified user base coming to the app multiple times a day, we always received interest from brands looking to leverage our app to communicate their messages. Both on the app (via digital space) and within the community (via events, kiosks, gate signages, etc).
We put this to the test in October 2021 and it took off almost immediately. We saw large brands come on board.
As of August 2023, the MyGate Brand Platform has become a fixture in the marketing mix of several large consumer brands. Not just on the app, brands also use MyGate to run offline campaigns in the society as well.
Current Financial Status: Responsible GrowthKey Business Metrices
The financial performance of the company has shown significant improvement over the years, reflecting strong growth and positive trends.8.4x revenue growth in FY23 over FY21
Between FY21 and FY23, the company’s operating revenue increased by 8.4 times, indicating a substantial expansion in its business operations. This growth can be attributed to both enterprise and consumer revenue streams. Revenue from enterprise sources, such as Resident Welfare Associations, FM Companies, Security Agencies, Builders, and other Brands, witnessed a remarkable increase. Additionally, revenue from consumer services, including utility bill payments, maintenance bills, and home services, also experienced substantial growth.Marginal 10% increase in expenses since FY21
Despite the significant increase in revenue, the company has effectively managed its expenses. Between FY21 and FY23, expenses increased by 10%, showcasing the company’s commitment to growing efficiently. This demonstrates the company’s ability to generate revenue growth while maintaining a disciplined approach towards expense management.
The company has, therefore, successfully reduced its losses, as indicated by the adjusted EBITDA figures. Between FY21 and FY23, the company’s losses decreased by 30%. This improvement highlights the company’s focus on profitability and its ability to optimize its operations. The reduction in losses signifies a positive trajectory towards sustainable financial performance.Cash burn at near-zero in FY24
The company has demonstrated a close-to-cash break-even in Q1 FY24. With cash inflow of 25.09 Crs and cash outflow of 26.76 Crs, the company’s cash burn was limited to 1.7 Crs between April ’23 to June ’23.. This showcases the company’s effective cash flow management and its ability to control expenses while generating sufficient cash inflow. The target to achieve cash break-even by Q3 FY24 further emphasizes the company’s commitment to financial stability.
Overall, the company’s financial performance reflects a positive growth trajectory. With significant revenue growth, efficient expense management, reduction in losses, and effective cash flow management, the company is well-positioned for continued success in the future.
Most Innovative, Most Used, Most Loved, Most ComprehensiveMost Innovative
We are known for driving innovation in this space. From e-Intercom to the community engagement platform, we have innovated in every aspect of the product.Most used
With over 3.5 million homes across 25,000 societies using MyGate, we are the largest community management app in the country.Most loved
MyGate is the highest rated Community App with a rating of 4.7 by 70,000 people rating us in Apple Store and a rating of 4.2 by 41,000 people rating us in Playstore.Most comprehensive community app with the largest scale
MyGate is established as the most comprehensive Community App from visitor/security management to Community ERP. Here is the view of the MyGate scale we are operating at:
- Enable collection of ₹2,500 crore in maintenance payments
- Facilitate the management of 6 million society helpdesk tickets
- Empower residents to book 2 million amenities
- Generate 12 million invoices enabling revenue collection for societies
- Validate 500 million house help visits
- Secure 700 million deliveries and cab entries
In Conclusion: Where to from here
After two cautious years, while we were more focussed on our business model – we returned to onboarding new societies in March 2023. We are aiming to close FY24 with 30,000 societies and 4.5 million homes, further consolidating our leadership position in the category. With this, we are aiming to grow our revenue 2X YoY and achieve cash breakeven before the end of December 2023.
The international market is also welcoming of the MyGate product and are impressed with what we have built. Expect more news coming on this front in the future.
Our focus on innovation continues and we have a slew of innovative products lined up in coming months to further delight communities and residents.
Until next time.