Business-to-business (B2B) fruits marketplace Vegrow’s gross scale has grown over 30X in the last two fiscal years (FY21 to FY23). The Bengaluru-based firm reported Rs 361 crore gross merchandise value (GMV) in FY23 which stood at Rs 11.8 crore in FY21.
When it comes to year-on-year growth, Vegrow’s gross revenue ramped up over 3.5X to Rs 361 crore during the fiscal year ending March 2023 as compared to Rs 100.8 crore in FY22, its annual financial statement with the Registrar of Companies show.
Financials FY23
Founded by Praneeth Kumar, Shobhit Jain, Mrudhukar Batchu and Kiran Naik, Vegrow operates as a B2B full stack platform for fruits. It aggregates supplies from farmers, farm gate partners, importers and vendors. After matchmaking, it sells to different channels like marketplace (mandi’s), exports, wholesalers, semi-wholesalers, modern trade, and retailers.
The company caters to both domestic and international markets and also provides ancillary services like loading, unloading, packing, storage, and warehousing of agricultural produce to farmers and customers.
As per TheKredible, Vegrow spent 62.6% of its total cost on purchases of stock (after adjustment of changes in inventories) which amounted to Rs 301.51 crore in FY23. This cost went up over 3X from Rs 91.86 crore in FY22.
Expenses Breakdown
https://thekredible.com/company/vegrow/financials
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https://thekredible.com/company/vegrow/financials
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- Purchases of stock
- Transportation
- Employee benefits
- Legal & professional
- Information technology
- Others
Transportation costs was another major cost for the company which jumped 3.3X to Rs 55 crore in FY23 from Rs 16.36 in the previous year. To harness growth, the company hired more resources, as a result, employee benefit expenses also spiked 3.5X to Rs 47.7 crore during the fiscal year.
Overall, the company’s total expenditure soared 3.6X to Rs 481.6 crore in FY23 from Rs 132.6 crore in FY22. Visit here for complete details of the company financials performance in the past.
Followed by the rise in expenses,Vegrow’s losses shot up 3.8X to Rs 114 crore during FY23 against Rs 29.7 crore in FY22. It recorded Rs 4.8 crore loss in FY21.
The cash burn can also be witnessed through the cash outflows from operations during the last fiscal year which increased 86% to Rs 114.3 crore.
Its EBITDA margin weakened by 199 BPS to -30.05% which can be attributed to rise in expenses during the year. On a unit level, Vegrow spent Rs 1.33 to earn a rupee during FY23.
FY22-FY23
| FY22 | FY23 |
| EBITDA Margin | -28.06% | -30.05% |
| Expense/₹ of Op Revenue | ₹1.32 | ₹1.33 |
| ROCE | -36.15% | -68.38% |
According to TheKredible, Vegrow has raised around $86.5 million to date from the likes of GIC, Prosus, Lightspeed and Elevation Capital among others. Its competition includes Dailyninja, Waycool and Zomato’s HyperPure.
