Apna’s FY24 Revenue Declines 29% YoY Amid Shift in Business Strategy

Apna, the professional networking startup that gained prominence as a LinkedIn-like platform for grey and blue-collared professionals, has reported a significant drop in its operating revenue for the fiscal year 2024. The company’s revenue tumbled by 29% year-on-year (YoY) to INR 127.6 crore, primarily due to a decline in income from its software development support services.  

The startup, founded in 2019, initially positioned itself as a go-to platform for connecting job seekers in the grey and blue-collared sectors with employers. However, in recent years, Apna has expanded its focus to include white-collar professionals, a move that appears to have impacted its financial performance.  

Financial Performance Overview  

Apna’s total expenses also saw a sharp decline, dropping 37% to INR 191 crore in FY24 from INR 308.4 crore in the previous fiscal year. This reduction in expenses reflects the company’s efforts to streamline operations and cut costs amid challenging market conditions.  

Despite the decline in revenue, Apna remains optimistic about its long-term growth prospects. A company spokesperson attributed the revenue dip to a strategic shift in its business model and a temporary slowdown in demand for its software development support services.  

“While FY24 presented some challenges, we remain committed to our mission of empowering professionals across all segments. Our expansion into the white-collar space is a strategic move to diversify our offerings and capture a larger share of the professional networking market,” the spokesperson said.  

Strategic Shift and Market Expansion  

Apna’s pivot to include white-collar professionals marks a significant shift from its original focus on blue and grey-collared workers. The platform, which gained rapid traction during the pandemic by addressing the unique needs of frontline and essential workers, has since broadened its scope to cater to a wider audience.  

Industry analysts suggest that this expansion, while ambitious, may have contributed to the revenue decline as the company invests in building its presence in a highly competitive white-collar segment dominated by established players like LinkedIn and Naukri.com.  

“Apna’s entry into the white-collar space is a bold move, but it comes with its own set of challenges. The company needs to differentiate itself in a crowded market while maintaining its core value proposition for blue and grey-collared workers,” said Anjali Mehta, a market analyst specializing in HR tech.  

Looking Ahead  

Despite the setbacks, Apna has continued to attract investor interest. The startup has raised over $190 million to date from prominent investors, including Tiger Global, Sequoia Capital and Owl Ventures. These funds are expected to support Apna’s expansion plans and help it navigate the competitive landscape.  

As Apna moves forward, the company faces the dual challenge of reviving its software development support services while successfully penetrating the white-collar market. Its ability to adapt to changing market dynamics and deliver value to both job seekers and employers will be critical to its future success.  

For now, Apna remains a key player in India’s professional networking space, with its unique focus on underserved segments setting it apart from competitors. However, the road ahead will require careful navigation as the company seeks to balance growth and profitability in an increasingly competitive environment.