Sequoia-backed Bijak’s revenue in FY22 was Rs 62.5 Cr, while its expenses increased 5.5X
- ByStartupStory | November 5, 2022
According to research, agritech firms saw a 300% increase in funding to $636 million from $155 million the year before in 2021, signalling the industry’s final year of significant investor interest. More than $550 million in new funds have entered the market so far this year, enabling these businesses to expand quickly.
The magnitude of Gurugram-based Bijak, which also raised money back-to-back during the time, increased many times over in FY22. According to the company’s annual financial records filed with the Registrar of Companies, revenue from operations increased 73X to Rs 62.5 crore during the fiscal year ended March 2022 from Rs 85 lakh booked in FY21 (RoC).
Through its mobile platform, the business facilitates the purchase and sale of agricultural commodities and transfers money on behalf of its clients (buyers and sellers). It receives commission payments for its activities in the form of loans, working capital, loans with pooled logistical services, and platform revenue.
Agricultural B2B trade portal Bijak was established by Nukul Upadhye, Mahesh Jakhotia, Jitender Bedwal, Daya Rai, and Nikhil Tripathi. The cost of materials was roughly 49% of total expenses for the year in the expense department. In FY22, the cost was Rs 59 crore as opposed to Rs 52 lakh in the year before.
The other significant cost during the previous fiscal, accounting for 29.7% of the whole costs, was employee benefit expenditures. From Rs 10.87 crore in FY21 to Rs 35.95 crore in FY22, the cost increased by 3.3X.
Advertising and promotional costs increased by 3X and 4X to Rs 6.76 crore and Rs 2.8 crore respectively during FY22. Additionally, the company spent Rs 4.8 crore on IT & support services (including payment gateway fees), an increase of 3.2X from Rs 1.51 crore in FY21.
From Rs 22 crore in FY21 to Rs 121 crore in FY22, Bijak’s yearly spending increased by 5.5X. The startup’s losses increased almost 3X to Rs 55.56 crore during FY22 as compared to Rs 17.5 crore in FY21, in line with income and expenses. During the same period, Bijak’s operating cash outflows increased 2.3X to Rs 65.2 crore. Scale expansion helped the business increase its EBITDA margin to -82.41% throughout the course of the year. In FY22, Bijak spent Rs 1.94 for every rupee of operating revenue that was generated.
Bijak, a member of the second batch of Sequoia’s accelerator Surge, received $20 million from Bertelsman with a valuation increase of about two times in January 2022. According to media sources, the company is anticipated to close the financing at about $35 million. The business operates in over 1,200 regions spread across 28 states, including Maharashtra, Uttar Pradesh, Madhya Pradesh, Punjab, and Bihar, and it trades in over 200 goods. Bijak recently asserted that 75,000 buyers and sellers trade on its platform each month, with transactions totalling more than Rs 300 crore.
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