Irish tech unicorn Flipdish has revealed its post-tax losses more than doubled from €11.4 million to €27 million this year. The losses, recorded in the newly released accounts for Flipdish Ltd, reflect a strategic focus on expansion and a recent business reorganization to enhance profitability.
Despite the increased losses, the company continues to pursue its growth trajectory, with revenues reaching €18.2 million in the 12 months ending on January 31st this year. This figure marks a significant uptick compared to revenues of €14 million for the previous 10 months.
The primary contributor to the company’s losses was administrative expenses, which surged by 90 percent from €20.6 million to €39.1 million. Of these expenses, “wages and salaries” saw a substantial increase, nearly doubling from €11.8 million to €20 million.
In addition to expansion costs, Flipdish also incurred redundancy costs of €1.76 million, a category that had previously recorded no expenses in the preceding period.
The company’s directors noted that a recent business reorganization allowed Flipdish to focus more intently on quick service and delivery for restaurants in core markets while renewing its commitment to cost management and achieving profitability.
In November 2022, the company acquired UK-based Jinoby Technologies Ltd for €5.5 million, further exemplifying its growth strategy and expansion into new markets.
Flipdish has actively expanded its workforce, employing 24 additional staff during the 12 months under review. Staff costs increased from €13.29 million to €24.05 million. Key management personnel received a total of €1.13 million in compensation. Director pay also saw an increase, rising from €456,294 to €551,831.
Last year, Flipdish earned the distinction of being a technology unicorn, a term used for businesses valued at over $1 billion (approximately €950 million). This achievement came after Tencent, a Chinese conglomerate, led a $100 million investment in the company. Tencent’s investment, which amounted to around $80 million for an 8 percent stake, followed a $48.5 million investment by Tiger Global Management in early 2021, valuing Flipdish at $1.25 billion.
Despite the significant losses, Flipdish remains a robust player in the quick service and delivery industry. The technology platform is employed by more than 7,500 customers in 32 countries, generating order revenues exceeding €250 million. Notable clients include industry-leading brands like Subway, Base Pizza, and Bombay Pantry. Flipdish positions itself as an alternative to well-known food delivery services like Deliveroo and Just Eat.
At the close of January this year, Flipdish’s shareholder funds decreased from €92.17 million to €67 million following the €27 million loss. The group’s cash funds also experienced a decline, from €92.54 million to €57 million.
Founded in 2015 by the McCarthy brothers, Conor and James, Flipdish continues to thrive despite challenging market conditions, setting its sights on sustained growth and profitability.