Online platform for buying and selling cattle, Animall has grown at a scorching pace in the fiscal year ending March 2023. The Gurugram-based firm also controlled its losses which barely grew by a little over 1% in FY23.
Four-year-old Animall’s gross revenue jumped over 4X to Rs 30.45 crore in FY23 as compared to Rs 7.18 crore in FY22, the company’s financial statement with the Registrar of Companies (RoC) shows.
Founded by Neetu Yadav, Kirti Jangra, Anurag Bisoyi and Libin Babu, Animall made the majority of its revenue from cattle trading and collected over 95% from the same while remaining came from artificial insemination, marketplace commission and subscription income.
The firm generated overall revenue of Rs 35.5 crore during FY23 which also includes a direct income from the sale of milk worth Rs 1.11 crore and interest and gain on financial assets of Rs 3.93 crore.
Launched in 2019, Animall claims to have sold over 850,000 cattle amounting to Rs 4,000 crore of GTV (gross transaction value) and currently at a monthly run rate of Rs 350 crore, as per the company’s website.
Similar to other marketplaces, Animall’s cost of sales was the largest cost element, forming 35.4% of the overall expenses. This cost jumped 4.5X to Rs 28.41 crore in FY23 from Rs 6.31 crore in FY22.
- Cost of sales
- Employee benefits
- Outsourced operating cost
- Direct expenses
- Advertisement & marketing
Employee benefit expenses were the second major cost which spiked 70.4% to Rs 19.25 crore during FY23. This cost also includes ESOP and ESPP costs of neary Rs 4 crore during the fiscal. Other expenses such as outsourced operating cost, advertisement and marketing dragged the company’s total expenditure up by 44.5% to Rs 80.2 crore during FY23. The company had recorded Rs 55.5 crore total expenses in FY22.
Animall’s expense breakdown and other details can be found at TheKredible.
Despite rising expenses, Animall managed to keep a control over losses which grew 1.1% to Rs 44.7 crore during FY23 against Rs 44.2 crore in FY22.
The EBITDA margin of the company improved to -124.25% while ROCE registered at -58.76% during the last fiscal year. On a unit level, Animall spent Rs 2.63 to earn a rupee of operating revenue during FY23.
|Expense/₹ of Op Revenue
As per the data intelligence platform TheKredible, Animall has raised around $23 million (~Rs 170 crore) to date from Beenext, Peak XV Partners, Nexus Ventures, Rocketship.vc et al. The firm last raised $14 million in Series B in July 2021 at a valuation of around $75 million or Rs 562 crore.
Besides physical pashu melas, Animall competes with the likes of Pashu Mall, Pashu Mela, MoooFarm, Pashushala and Pashu Vyapar.
Like all things rural, the addressable market is immense for Animall, the only challenge being getting a piece of the same large market. Even in the animal trading business, issues like cash transactions, animal health after a sale, or buyers/sellers changing their minds is very common, making it a very complicated market to deal in. Animall has obviously impressed investors with the volume of transactions it has been able to route through its portal, but the challenge of turning a profit remains.
The high sales cost indicates a willingness to absorb the cost of funneling sales through its platform, but will those transactions continue when the firm demands the ‘real’ cost of transacting? Animall might find itself trying to offer more and more value added services to keep its customers and/or continue to grow the market. Short of a deep dive into the market dynamics, one has to say, based on the numbers at hand, that actual profitability is still distant for this firm in a really tough market.