FatPipe Inc. reported a net revenue of $16.3 million for the fiscal year ending March 31, 2025, a decline of 9% from the previous year's revenue of $17.9 million. The decrease in revenue was attributed to reduced sales of software solutions and services, as management focused on obtaining SEC approval for its initial public offering (IPO). The company's gross profit also fell to $15.2 million, down from $16.8 million in the prior year, reflecting a gross margin decrease from 94% to 93%. Despite the revenue decline, FatPipe's cost of revenue remained relatively stable, decreasing slightly to $1.06 million from $1.07 million.
In terms of operational changes, FatPipe completed its IPO on April 9, 2025, raising approximately $4.5 million in gross proceeds. The company issued 791,024 shares at an initial price of $5.75 per share, with net proceeds of about $3.7 million. This capital is expected to support ongoing operations and future growth initiatives, particularly in expanding its presence in North America and Southeast Asia. The company also launched its new cybersecurity product, FatPipe Total Security 360, in April 2025, which is anticipated to enhance revenue streams moving forward.
FatPipe's customer base has grown to over 2,500 end-users, with a significant presence in the United States and India. The company reported a 23% increase in annual and monthly recurring billings from its products and services, excluding consulting services, indicating a positive trend in customer engagement. However, the company remains reliant on a few key partners, with three partners accounting for approximately 53.77% of total revenue in the fiscal year 2025, highlighting a concentration risk.
The company employed 154 full-time employees as of June 30, 2025, with a notable presence in India, where 92 employees are based. FatPipe's management has indicated plans to enhance its sales force and expand its distribution network to mitigate risks associated with customer concentration and to drive future growth. The company is also exploring partnerships in Southeast Asia and Mexico to tailor its offerings to specific market needs.
Looking ahead, FatPipe anticipates continued growth in recurring billings and revenue, driven by its expanding product offerings and strategic initiatives. However, the company acknowledges potential challenges, including economic conditions, competition, and the need to adapt to evolving market demands. Management remains focused on leveraging its technological innovations and expanding its market share in the rapidly growing SD-WAN and cybersecurity sectors.
About Fatpipe Inc/UT
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