Advantage Club, the employee management platform, has exhibited a remarkable growth trajectory in the fiscal year 2023, as reported by Entrackr. Operating revenue surged by an impressive 93.4% to reach Rs 323 crore from Rs 167 crore in FY22, showcasing the startup’s robust performance despite prevailing challenges.
This accomplishment sets a promising tone for the company’s journey towards profitability in the forthcoming fiscal year. Renowned for its comprehensive employee engagement and experience solutions, Advantage Club has significantly expanded its global footprint, serving a diverse clientele spanning 1,000 companies across 100 countries. Notably, this expansion has been accompanied by a substantial increase in its user base, which doubled to 4 million within a span of less than 15 months.
Established in 2014 by Smiti Deorah and Sourabh Deorah, Advantage Club’s offerings encompass a wide spectrum of employee-centric services, including rewards, recognition, flexible benefits, wellness programs, onboarding solutions, and more. The bulk of Advantage Club’s revenue, totaling 91.5%, is attributed to voucher sales, which experienced a remarkable surge of 92% to reach Rs 297 crore in FY23. The remaining revenue was generated from the sale of services, discount income devoid of product margin, and brand breakage.
However, it’s noteworthy that the procurement of vouchers, constituting the largest cost center, accounted for 92% of the total expenditure, underscoring the challenges associated with cost management amidst rapid scaling of operations. According to data from CrunchBase, Advantage Club has successfully secured over $6.7 million through five funding rounds thus far. Notable investors include Acequia Capital (AceCap), Kunal Shah (Founder of CRED), Eastlink Capital, Kube VC, Y Combinator, Jetty Ventures, and Broom Ventures, among others. In November 2021, the startup raised $5 million as part of its pre-Series A funding round, further bolstering its financial standing and growth prospects.
