Fave’s revenue slumps 24% in FY 2023, loss improves 78%

Photo credit: Fave

Fave logged US$8.8 million in revenue, its lowest in five years, for the financial year ended March 31, according to data from VentureCap Insights. This marks the second financial year since the firm was acquired by merchant enabler Pine Labs in a US$45 million deal.

Since 2017, Fave’s revenue has hovered around US$10 million, with its lowest coming in at US$9.5 million in 2018. The 2023 revenue was a 23.5% year-over-year slump from the previous year’s figure.

However, the percentage may be partly caused by Fave’s adjustment of its financial year end. FY 2022 lasted from January 1, 2021 through March 31, 2022 – three months longer than FY 2023.

Tech in Asia has reached out for comment.

While Fave’s gross profit shrank 20.7%, the company improved its total loss for the year by 77.7% to -US$8.9 million, mainly due to a significant drop in administrative costs.

According to VentureCap Insights data, Fave reduced its total workforce by 9.4% from January 7, 2022 through the start of this year.

Its net cash from operating activities stood at -US$6.4 million, almost half of the FY 2022 figure. The firm had US$5.7 million in cash and short-term deposits as of March 31, 2023.

Founded in 2012, Fave offers deals at restaurants, spas, salons, and gyms, among other wellness services. It also handles cashless payments through FavePay, providing cashback rewards at over 10,000 shops.

Pine Labs acquired Fave in 2021, and the former is doubling down on its Southeast Asia expansion after raising US$50 million from London-based Vitruvian Partners.

As part of this effort, Pine Labs partnered with payments gateway provider 2C2P to expand the former’s buy now, pay later services to Singapore, Malaysia, Hong Kong, Indonesia, Thailand, and the Philippines.

However, shortly after its 2023 financial year ended, Fave exited Indonesia to focus on its core markets, Singapore and Malaysia, and start new operations in India. The company did not disclose how many employees were affected by this decision.

Fave co-founder and CEO Joel Neoh had also stepped down from the company earlier this year. He later joined Prenetics Group Limited, a healthtech firm based in Hong Kong, to lead its consumer health business as chief consumer officer.

See also: Southeast Asia’s thriving buy now, pay later players (update)