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Groyyo’s gross revenue nears Rs 500 Cr in FY23

EntrackrEntrackr · 1y ago
Groyyo’s gross revenue nears Rs 500 Cr in FY23
Medial

B2B manufacturing and automation startup Groyyo grew at a rapid clip with 19X growth during the fiscal year ending March 2023. But in the pursuit of chasing scale, the Tiger Global-backed company’s losses zoomed 13.6X during the same period. Groyyo’s gross revenue surged 18.9X to Rs 492 crore in FY23 from Rs 26 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. Founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, Groyyo is a supply chain enablement platform that helps digitize manufacturing small and medium businesses and match demand and supply from national and international clients. The sale of products is the main source of revenue for Groyyo which increased 17.8X to Rs 452 crore in FY23. Income from commission and subscription are other revenue drivers for the Delhi-based company. See TheKredible for the detailed revenue breakup. For the B2B manufacturing and automation startup, the cost of procurement of goods accounted for 82.17% of the overall expenditure. With growth in scale, this cost surged 18.2X to Rs 475 crore in FY23. Its employee benefits, traveling, legal, doubtful debtors, business consultancy, samples, and other overheads took the overall cost to Rs 578 crore in FY23 from Rs 31 crore in FY22. See TheKredible for the full expense breakup. Expenses Breakdown Total ₹ 296 Cr https://thekredible.com/company/groyyo/financials View Full Data To access complete data, visithttps://thekredible.com/company/groyyo/financials Total ₹ 296 Cr https://thekredible.com/company/groyyo/financials View Full Data To access complete data, visithttps://thekredible.com/company/groyyo/financials Cost of procurement Cost of procurement Employee benefit Employee benefit Travelling conveyance Travelling conveyance Legal professional Legal professional Business consultancy Business consultancy Sample purchased Sample purchased Others Others Provision for doubtful debtors To check complete Expense Breakdown visit thekredible.com View full data The mounting growth in employee benefits and provisions for doubtful debtors led Groyyo’s losses to increase by 13.6X to Rs 68 crore in FY23 from Rs 5 crore in FY22. Its ROCE and EBITDA margin stood at -35% and -11.4% respectively. On a unit level, it spent Rs 1.17 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -204% -11.4% Expense/₹ of Op Revenue ₹1.19 ₹1.17 ROCE -265% -35% Groyyo has raised $32.6 million across rounds. According to the startup data intelligence platform TheKredible, Alpha Wave is the largest external stakeholder with 23.64% followed by Tiger Global. A large head of expenses under doubtful debtors is hopefully a one off, but Groyyo will need to avoid taking the route of easy credit to get buyers on board. It usually doesn’t end well, and certainly doesn’t end profitably. With a market that is becoming more complex in terms of supply chain compliances, the firm certainly has a massive opportunity to support both buyers and sellers across the categories it is focused on. Handholding both through those issues will matter in the coming future, and will ensure the kind of value add that ties in customers for much longer.

Tiger Global-backed Groyyo’s growth stalls in FY24; losses climb

EntrackrEntrackr · 5m ago
Tiger Global-backed Groyyo’s growth stalls in FY24; losses climb
Medial

After achieving a 19X year-on-year growth in FY23, B2B manufacturing, and automation startup Groyyo saw its scale decline by 14.4% in the fiscal year ending March 2024. Moreover, the Tiger Global-backed company's losses increased by 9% during the same period. Groyyo’s gross revenue decreased to Rs 421 crore in the last fiscal year from Rs 492 crore in FY23, according to its consolidated annual financial statements accessed from the Registrar of Companies. Founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, Groyyo is a supply chain enablement platform that helps digitize manufacturing at small and medium businesses and match demand and supply from national and international clients. The sale of products was the main source of revenue for Groyyo. Collections from commissions and subscriptions were other revenue drivers for the Delhi-based company in FY24. For the B2B manufacturing and automation startup, the cost of procuring goods accounted for 78.65% of the overall expenditure. As the scale dipped, this cost decreased by 13.5% to Rs 409 crore in FY24. On the other hand, the cost of employee benefits surged by 81.5% to Rs 49 crore in the previous fiscal year (FY24). Its legal, advertising, write-off assets, traveling, and other overheads led the overall cost to Rs 520 crore in FY24, compared to Rs 578 crore in FY23. The dip in scale caused its losses to increase by 8.8% to Rs 74 crore in FY24 from Rs 68 crore in FY23. On a unit level, it spent Rs 1.24 to earn a rupee. Its ROCE and EBITDA margin worsened to -46.15% and -13.45% respectively. By the end of FY24, its total current assets stood at Rs 256 crore, including Rs 99 crore in cash and bank balances. Groyyo has raised over $50 million across debt and equity including its $40 million Series A round led by Tiger Global. The company was also reportedly in talks to raise $40 million. According to the startup data intelligence platform TheKredible, Alpha Wave is the largest external stakeholder followed by Tiger Global. Running up short on growth or margins can be a huge issue for a startup serving the market that Groyyo does, considering the intense competition and strong competitors in the game.

Accel-backed Deep Rooted to shut operations

EntrackrEntrackr · 5m ago
Accel-backed Deep Rooted to shut operations
Medial

Farm to fork startup Deep Rooted has decided to shut down its operations, according to three people aware of the matter. Started as a B2B business, Deep Rooted used to manage 100 acres of greenhouses and supply vegetables and fruits to over 120 restaurants in Bengaluru. However, the company pivoted to B2C after covid. "Deep Rooted struggled to establish a consumer-focused model and, in early 2024, shifted back to a B2B approach on quick commerce platforms like BlinkIt and Zepto. However, it failed to achieve substantial scale there as well," said a source requesting anonymity. Deep Rooted raised over $18 million including $12.5 million Series A funding from IvyCap Ventures, Accel, Omnivore, and Mayfield in September 2022. According to startup data intelligence platform TheKredible, Accel is the largest stakeholder in the company followed by IvyCap and Omnivore. "Without a viable business model, the company was unable to secure follow-on funding and ultimately decided to shut down operations," said another source who also wished not to be named. Deep Rooted's struggles were also reflected in its financial performance in the last fiscal year. Its revenue from operations declined by more than 57% to Rs 34.37 crore in FY24 from Rs 80.97 crore in FY23. During the period, its losses increased slightly to Rs 52.21 crore from Rs 47.07 crore. This will be the second major company in this segment to struggle, following Fraazo, which shut down its operations despite raising $65 million from investors such as WestBridge Capital, Sixth Sense Ventures, Equanimity Investments, and Apar Group. Otipy, which is also backed by WestBridge Capital, along with other companies like Pluckk, Gourmet Garden, and Kisankonnect, operate in the same space.

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