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Headsup B2B gross scales over 8X in FY24; profits spikes 88%

Entrackr · 15d

Construction goods and services platform Headsup B2B achieved over 8X year-on-year growth during the fiscal year ending March 2024. At the same time, the Delhi-based company’s profit increased by over 88% in the same period. Headsup B2B’s gross revenue spiked to Rs 43.4 crore in FY24, from Rs 5 crore in FY23, its annual financial statement filed with the Registrar of Companies (RoC) shows. Headsup B2B supplies construction materials, including cement, TMT steel, tiles, sanitary fittings, at wholesale prices across Delhi (NCR). The sale of goods is the sole source of revenue for the firm in FY24. According to the website of the company, it had delivered 1, 1400 MT of MMT, 500 tons of aggregates, and 150 MT of MS steel. For the construction goods platform, the cost of procurement of construction materials formed the largest cost component forming 96.8% of the overall expenditure. To the tune of scale, this cost spiked 12X to Rs 41.34 crore in the last fiscal year. Employee benefit expenses saw a modest increase of 3.3% to Rs 62 lakh, while finance costs rose to Rs 21 lakh. Overall, the company’s total expenses surged 9X to Rs 42.7 crore during the last fiscal year, from Rs 4.6 crore in FY23. Headsup B2B achieved a net profit of Rs 64 lakh in FY24, a notable 88.2% increase from Rs 34 lakh in FY23. Its ROCE and EBITDA margins improved to 65% and 2.52%, respectively. On a unit basis, the company spent Re 0.98 to earn a rupee of operating revenue in FY24. Headsup B2B's cash and bank balances grew significantly to Rs 11 lakh, while current assets increased to Rs 7.55 crore. Headsup B2B secured its first investment round of Rs 18.89 crore in September this year. The company, which has already surpassed Rs 100 crore in revenue since its inception, is targeting Rs 150 crore in revenue for the current fiscal year. Headsup B2B is an emerging player in the B2B construction goods marketplace, a segment which has been dominated by established players like OfBusiness, Moglix and Infra.Market. It also competes with new age companies like BRKZ, which is backed by BECO Capital and Aramco’s Wa’ed Ventures. Highlighting the scope of Headsup B2B, its founder, Sumit Kumar, said, "B2B space offers untapped potential into areas that are yet to be explored by well-funded companies and this gives us an interesting proposition to explore such segments.” According to Sumit Kumar, the company plans to initiate a fundraising campaign soon. "Our business model is more capital-efficient compared to our competitors. We aim to let our performance metrics speak for themselves, building the trust we need from potential investors," he said.