Bengaluru-based full-stack consumer engagement platform, Exotel has reduced its losses by 65% in FY24 compared to the previous fiscal year, while revenue inched up from ₹420 crore to ₹445 crore during the same period.

Speaking to CNBC-TV18, Adarsh Dikshith, the Chief Financial Officer (CFO) of Exotel, attributed this achievement to the company’s strong margin structure, which he described as one of the best in the industry.

Exotel’s ability to control margins while managing capacity has been key to minimising losses during a period of demand fluctuations. Dikshith emphasizes that the company foresaw these challenges back in early 2022-2023 and made the necessary adjustments early on. This forward-thinking approach allowed Exotel to execute cost-saving strategies without sacrificing the quality of their services or compromising gross margins, he added.

Looking ahead, Dikshith expressed confidence that Exotel will enter the profit zone in FY25. The company’s financial goals for the upcoming fiscal year are clear: to further reduce losses and transition into profitability. Dikshith said this trajectory is expected to continue beyond FY25, driven by further optimisation of margins and capacity.

Started in 2011, Exotel allows companies to manage customer engagement through an omnichannel contact center, a suite of communication APIs and a conversational artificial intelligence platform over the cloud.

In a separate development, Home-grown haircare brand, Arata, has successfully raised $4 million in its Series A funding round. The round was led by Unilever Ventures, the venture capital and growth capital arm of Unilever, with participation from Bolt- L’Oréal’s venture capital fund, and existing investors, including the Skywalker Family Office.

Notably, this funding marks the first-ever direct investment by L’Oréal’s venture capital arm in an Indian startup. With a remarkable 3x growth in the last 12 months, Arata plans to use the newly raised capital to fuel its ongoing innovation, expand consumer research efforts, and enhance its product distribution.

Dhruv Madhok, Co-Founder of Arata, shared the company’s strategic vision for the future stating, “With this fundraise, we plan to further double down on what’s working very well for us—research and development. We will continue to create highly effective and innovative solutions for the Indian hair market, addressing both hair and scalp needs. We are also investing heavily in content, marketing, and expanding our reach, aiming to position Arata as an export destination for hair care and beauty.

Additionally, attracting top talent is a crucial part of our growth strategy. We’re focused on bringing in some of the best minds from across the country to work on various functions, from formulations and operations to marketing.”

Dhruv Bhasin, co-founder of Arata, emphasised the company’s focus on sustainability and profitability despite its rapid growth. “We have really concentrated on building a sustainable business over the past two years. This fundraiser comes on the back of a solid foundation we’ve already built. Over the last 12 months, we’ve seen exponential growth of about 3x, and we’re on track to hit ₹72 crore in annual recurring revenue this year.

With a gross margin of 72% and EBITDA nearly flat year-to-date, we’ve managed to achieve strong profitability while growing at an exceptional rate. Our goal is to continue growing sustainably while maintaining high customer retention and satisfaction.”

Additionally, Matt Chitharanjan, CEO of Blue Tokai, shared details about the company’s strategy to enter the bubble tea market. The specialty coffee chain, which recently secured $35 million in funding, is also planning an acquisition within the bubble tea industry. In addition to its expansion into Japan, the coffee startup is set to open a new café in the Middle East.

Moreover, Himanshu Sharma, Co-Founder of Devnagri, shared his ten-year vision for the startup. The generative AI translation platform is projecting a 200% year-on-year growth and expects its revenue to reach $3 million in the upcoming months.

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