VilCart’s GMV surpasses Rs 200 Cr in FY22 profitability within reach
- ByStartupStory | February 24, 2023
Asia Impact led a Series A funding round that raised $18 million (Rs 144 crore) for B2B rural e-commerce startup VilCart in January 2023. With a 10-fold increase in gross revenue in the past two fiscal years (FY21 and FY22), VilCart’s valuation is estimated to be around $50 million in the latest round, according to Fintrackr. The company’s gross revenue, also known as GMV, surged from Rs 21.8 crore in FY20 to Rs 209.7 crore in FY22. VilCart’s remarkable growth in the last fiscal year underscores its strong performance and potential in the B2B rural e-commerce market.
According to its annual financial report with the Registrar of Companies, B2B rural e-commerce startup VilCart witnessed a substantial 2.65X increase in gross merchandise revenue (GMV) from Rs 79 crore in FY21 to Rs 209.7 crore in the last fiscal year. The company, which is just four years old, provides rural kirana stores and consumers with a local language mobile app. VilCart also serves as a sourcing, logistics, marketing, technology, and branding partner for these stores, highlighting its comprehensive approach to rural e-commerce.
VilCart generates its revenue solely from the sale of various products, including grocery, cleaning, beauty, personal care, and beverages to kirana stores. The company reports servicing approximately 85,000 such stores across 30,000 villages in Karnataka, primarily through its local language mobile app. In terms of expenses, VilCart’s procurement of products accounted for 90.2% of its total expenses, which surged from Rs 75.19 crore in FY21 to Rs 199.28 crore in FY22, representing a 2.6X increase. Meanwhile, the cost of traveling conveyance rose by 2.77X to Rs 8.6 crore in FY22, and the cost of secondary packaging increased by 11X to Rs 5.28 crore.
VilCart’s expenses on employee benefits remained nearly constant at Rs 2.83 crore in FY22, while it spent an additional Rs 1.18 crore on legal and professional charges, pushing its total expenses to Rs 220.9 crore, a 2.65X increase over the previous fiscal year. As VilCart’s GMV grew, its losses increased to Rs 11.13 crore in FY22 from Rs 4.8 crore in FY21. The company spent Rs 1.05 to earn one unit of GMV.
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