Ninjacart posts revenue of Rs 967 Cr in FY22 while containing losses
- ByStartupStory | November 14, 2022
If we look at the business-to-business (B2B) agritech company Ninjacart’s financial success during the last several fiscal years, it has become the market leader in the sector. The Bengaluru-based company expanded by 28% in FY22 while bringing its losses under control.
The company’s annual financial statement filed with the Registrar of Companies (RoC) reveals that Ninjacart’s revenue from operations increased by 28% to Rs 967 crore during the fiscal year ended March 2022 from Rs 755 crore recorded in FY21.
The primary source of income, fruit and vegetable sales made up over 82% of the total operating income. From Rs 645.3 crore in FY21 to Rs 795.5 crore in the most recent fiscal year, revenue from this vertical increased by 23.3%.
During FY22, revenue from the sale of grains and other food staples increased by 66% to Rs 162.2 crore or about 17% of total revenue. During the same time period, the company also made Rs 9.7 crore from delivery services.
Ninjacart reported non-operating revenue of Rs 24 crore in FY22, which helped to bring the total income to Rs 991 crore. This revenue came primarily from interest on fixed deposits and other current investments.
Ninjacart, which began as a B2C company in 2015 but quickly switched to a B2B model, enables retailers, restaurants, and mandis sellers to buy fresh produce directly from farmers. According to the company, there are over 200 collection points, 1,200 warehouses, and over 1,400 tonnes of fresh produce moved every day across seven Indian cities, including Bengaluru, Chennai, the National Capital Region, and the Mumbai-Pune region.
The cost of products sold, which accounts for nearly 70% of all expenses, has emerged as the largest cost component. From Rs 679.8 crore in FY21 to Rs 915.8 crore in FY22, this expense increased by 34.7%. Employee benefits costs were the company’s second-largest expense, even though it was constant in FY22 at Rs 162.8 crore. Additionally, a 9.94 crore rupee equity-settled employee share-based payout is included.
In FY22, the amounts spent on logistics and commissions given to sales agents decreased by 53% and 48%, respectively, to Rs 60.8 crore and Rs 38.7 crore. During the previous fiscal year, the corporation also spent Rs 15.7 crore on utilities including rent, communication, safety, and security.
As a whole, the company’s yearly spending grew 12.7% to Rs 1,299 crore in FY22 from Rs 1,153 crore booked in the prior year (excluding impairment loss on non-financial assets of Rs 647 crore during FY21). The company was able to reduce its losses throughout the year by 18.1% to Rs 308 crore from Rs 376 crore in FY21.
Additionally, Ninjacart was able to limit its operating cash outflows in FY22, bringing them down by 18.8% to Rs 263 crore. Regarding ratios, ROCE and EBITDA margins increased to -28.04% and -24.68%, respectively, during the year. For every rupee of operating revenue in FY22, the company spent Rs 1.34.
The Tiger Global-backed startup raised $145 million from Walmart and Flipkart in December 2021 (during FY22) at an $815 million value to reach the soonicorn list. More than 100 agritech businesses raised close to $1.4 billion between January 2020 and November 2022, according to statistics gathered. Near Ninjacart in value are DeHaat and Waycool. DeHaat and Waycool reported revenue in F21 of Rs 358 crore and Rs 382.33 crore, respectively, while Ninjacart narrowly missed the Rs 1,000 crore revenue milestone. They have yet to submit the numbers for FY22.
For Ninjacart, which must aim for profitability by FY24 at the earliest, the control over employee costs and the decrease in logistics costs show the company is much closer to the level of consolidation needed for a loss-making business before pursuing the next stage of growth. Even for B2B, the fresh produce industry is extremely difficult and cutthroat, with a very high share currently held by the major urban areas (where Ninjacart is also concentrating its efforts). Again, expanding outside of these areas will require sizable investments. The key decision for Ninjacart may therefore be whether to expand to attract new customers or squeeze out more efficiencies and expand offerings to existing customers. Before the reserves nearby take control of the decision, it will need to make a choice.
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