The venture has seen robust revenue growth through the years of the pandemic and the growth rate has improved with the go-back-to-work drive over the last year with the trend expected to continue. It is reflected in the audited numbers and FY24 projections.
India has grown with a CAGR of 63% over the last three years, while the US has shown a remarkable 300% CAGR in the same period resulting in an 83% CAGR in the overall business.
Kunal Sharma, the Founder and CEO of Flipspaces, said, “Post our last fundraise, we were focussed at driving efficiency at every level in order to achieve the milestone of becoming profitable at an overall EBITDA level while maintaining a high growth trajectory. It was never “this versus that” as far as growth and profitability are concerned, for us. It is a milestone worth celebrating and has been achieved due to economies of scale, tech-driven expansion of margin profile and the operating leverage we get from being present in India and USA.”
“We have grown our business by approximately 2X in both India and the US in this fiscal along with achieving profitability which was a tough task. Among other factors, we could achieve it because of inculcating a leadership culture that truly believes in and celebrates profitability and sustenance,” Kunal further adds.
According to Ankur Muchhal, Co-Founder and COO of Flipspaces, “Flipspaces is the only venture in the category which has an active base in the US with a fully operational presence and an office in NYC. We are now also EBITDA profitable in the US as geography and will continue to grow from here. “
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According to the company, the US has seen an approximate growth of 2X YoY for the last 4 years and the contribution of the US in total revenue has grown from 8.59% to 23.68% for the venture across the same period. This also helps the blended margin of the business since the US operates at a better margin profile.” Vikash Anand, Co-Founder and Partner at Flipspaces, explains, “Our profitable scale has also been buoyed by our ability to empanel large-size mandates with Legacy MNCs and corporates. While the massive SME category (65 million across India and USA) has been the typical Flipspaces Customer Persona for Commercial Design and Build Mandates, we are now regularly winning large and super- large mandates due to our expansive body of work and tech-differentiation.”
Recently, Flipspaces won and executed a 1 lakh Square Feet office space for an eminent BFSI within 100 days, a benchmark in speed of execution which is another critical moat in this category. It is in the process of empaneling several such large size mandates thus also making a dent in the last commercial category differentiated by its tech and process.
“Today, Flipspaces has a happy challenge of having more business than they can handle and has started building for the next level of scale. Becoming profitable and cash-generating gives us an infinite runway to continue building scale with capital efficiency and become a category-defining business in this massive USD 250 Billion category across India and the US,” says Kunal as he signs off.
Flipspaces is backed by Carpediem Capital, a growth-stage PE fund, a consortium of investors led by Prashasta Seth (former CEO of IIFL AMC), and several other family groups.
Contributed by Mr. Kunal Sharma, Founder & CEO of Flipspaces.
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