News Update

DeHaat, Agritech Startup, Reports 54.2% Revenue Growth in FY23

• ByStartupStory     |    November 8, 2023

Agritech marketplace DeHaat raised $60 million in FY23, led by Sofina Ventures, with a breakeven target set for FY24. Despite ambitious goals, the firm reported widening losses of Rs 371 crore for the fiscal year ending in March 2023.

DeHaat’s gross revenue in FY23 surged by 54.2%, reaching Rs 1,965 crore, compared to Rs 1,274 crore in FY22, as per annual financial statements filed with the Registrar of Companies (RoC). DeHaat functions as a marketplace for the agricultural sector, providing high-quality agrarian inputs, advisory services, lending, and market linkages for farmers to sell their produce. 

The company expanded its presence across 11 states and operated over 10,000 DeHaat franchise centers serving 1.5 million farmers in 100,000 villages by March 31, 2023.

The majority of revenue (98.5%) came from the sale of agricultural products, with an additional Rs 32 crore generated from investment sales during FY23.

In terms of expenses, procurement costs made up 78.6% of the total cost, which increased by 50.6% to Rs 1,862 crore in FY23, up from Rs 1,236 crore in FY22. DeHaat’s overall cost included employee benefits (including ESOP costs), transportation, rent, warehousing, brand and sales promotion, amounting to Rs 2,368 crore in FY23, up from Rs 1,478 crore in FY22. 

Notably, non-cash expenses such as fair value adjustments of Compulsory Convertible 

Preference Shares (CCPS) were excluded from both years.

Despite significant growth, DeHaat’s losses surged by 94.2% to Rs 371 crore in FY23. The return on capital employed (ROCE) and EBITDA stood at -34.86% and -16.52% in the last fiscal year. On a unit level, DeHaat spent Rs 1.21 to earn one rupee from operations in FY23.

DeHaat has raised approximately $230 million to date and is valued at $705 million. According to the startup data intelligence platform TheKredible, Peak XV Partners holds the largest external shareholding with 14.14%, followed by Sofina, Naspers, Omnivore, and others.

Exciting news! We’re now on WhatsApp Channels too.  Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!

While the impact of fundraising is evident in terms of channel and volume expansion at DeHaat, the sharp rise in costs is a concern, indicating areas where the firm may need to tighten its operations or make strategic decisions. With a significant investor share, decisions are likely to be made promptly.

Follow Startup Story