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Unnati Agri crosses Rs 500 Cr revenue in FY24; losses widen marginally

EntrackrEntrackr · 1m ago
Unnati Agri crosses Rs 500 Cr revenue in FY24; losses widen marginally
Medial

Unnati Agri continued its growth momentum by crossing the Rs 500 crore revenue mark in the fiscal year ending March 2024. While its losses increased by 14% year-on-year, they remained under control during the same period. Unnati Agri’s revenue from operations increased by 30% to Rs 515 crore in FY24, from Rs 397 crore in FY23, according to its financial statements sourced from the Registrar of Companies (RoC). Unnati enables farmers to buy agri-inputs and sell produce directly to food processors and agribusinesses, generating 99% of its revenue from these transactions. It also offers pre- and post-harvest services along with working credit through a unified platform. On the expense side, material costs remained dominant at 88% of total expenses. These costs rose 27% to Rs 469 crore in FY24 from Rs 370 crore in FY23. Discount charges, tied to incentives and promotions, more than doubled to Rs 31 crore from Rs 15 crore. Employee benefits increased to Rs 15 crore, and other expenses rose to Rs 18 crore. Overall, the Orios Venture-backed firm’s total expense increased by 29% to Rs 533 crore in FY24 from Rs 412 crore in FY23. Despite the top-line growth, the company’s losses slightly widened to Rs 16 crore in FY24 from Rs 14 crore in FY23. Its ROCE and EBITDA stood at -17.19% and -2.03%, respectively. On a unit basis, the company spent Rs 1.03 to earn a rupee of operating revenue in FY24. Unnati’s total assets rose to Rs 144 crore in FY24, with current assets reaching Rs 141 crore. As of March 2024, the firm held Rs 34 crore in cash and bank balances, offering a liquidity buffer. According to startup data intelligence platform TheKredible, Unnati Agri has raised approximately $14 million in funding till date, having NABVENTURES and VSS Investco as its lead investors. Its co-founders, Amit Sinha and Ashok Prasad together own 44.6% of the company.

Bizongo’s scale doubles to Rs 167 Cr in FY23; loss nears Rs 300 Cr

EntrackrEntrackr · 1y ago
Bizongo’s scale doubles to Rs 167 Cr in FY23; loss nears Rs 300 Cr
Medial

Ecommerce-focused packaging company Bizongo has managed to double its revenue during FY23. The growth, however, came at a cost which is evident from its losses which jumped 2.7X during the said period. Bizongo’s revenue from operations grew 98.6% to Rs 166.86 crore during the fiscal year ending March 2023 as compared with Rs 84 crore in FY22, as per the company’s consolidated financial statements with the Registrar of Companies. Founded in 2015, Bizongo offers digital vendor management, supply chain automation & supply chain financing as key services to its enterprise customers. The platform serves 450-500 enterprise customers in fashion & lifestyle, pharmaceuticals, consumer discretionary, consumer staples et al. Bizongo also provides unsecured financing to vendors and according to the company it has tied up with more than 40 banks and non-bank financial companies for loan disbursement. Co-founded by Sachin Agarwal, Ankit Deb, and Ankit Tomar, the company made 96% of its revenue via service fees whereas the remaining part came from design income and platform fees. It also made around Rs 18.15 crore via interest and gains on financial assets during the year which took its topline to Rs 185 crore at the end of FY23. Bizongo spent 32% of its expenses on finance costs which largely include interest on bill discounting, interest on working capital demand loans, and interest on debentures. This cost ballooned 3.9X to Rs 151.95 crore during FY23 from Rs 38.8 crore in FY22. Employee benefit costs went up 79.4% to Rs 113.23 crore in FY23. This cost also includes ESOP expenses worth Rs 27.12 crore. The company also booked allowance for expected credit loss worth Rs 124 crore during the year. The company’s overall expenditure surged 97.1% to Rs 476.6 crore in FY23 from Rs 241.8 crore in FY22. Head to TheKredible for a complete expense breakdown and year-on-year financial performance of the company. Amid cash burn, the company’s losses spiked 173.1% to Rs 291.57 crore during FY23 as compared to Rs 106.76 crore in FY22. Its operating cash outflows, however, improved by 29.6% to Rs 646.3 crore during the last fiscal year. The EBITDA margin and ROCE of the company stood at -73.06% and -27.60%, respectively, during the year. On a unit level, Bizongo spent Rs 2.86 to earn a rupee of operating revenue in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -46.45% -73.06% Expense/Rupee of ops revenue ₹2.88 ₹2.86 ROCE -9.52% -27.60% As per the startup intelligence platform TheKredible, Bizongo has raised over $260 million to date. In October last year, it raised $50 million in a Series E funding round led by existing investor Schroder Adveq. The Tiger Global-backed company was also in the news for its acquisition of Titan Capital-backed FactoryPlus, a factory digitization app for micro, small, and medium enterprises (MSMEs), in November last year. Bizongo’s high provisions for credit loss indicate a cash-burning strategy to sort out the good, credit-worthy vendors from the bad, or worse, operational deficiencies that the firm must get a grip on to ensure its long-term survival. It remains in a promising segment to build a business at scale, but throwing money at the challenge to build a business is certainly not the answer. That investors have backed it as recently as last year indicates the possibilities they see for the firm to make a salutary impact on its segment, but we believe the time to show growth with improving margins is here.

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