Saas-based ecommerce enablement solutions provider EasyEcom has continued its growth journey as its operating scale grew by 64.5% in FY23. However, its losses surged over 18X in the same period.
EasyEcom’s revenue from operations grew to Rs 6.71 crore during the fiscal year ending March 2023 in comparison to Rs 4.08 crore in FY22, as per data shared by the startup intelligence platform TheKredible.
Co-founded by Punit Gupta and Swati Jindal in 2015, EasyEcom’s SaaS suite includes inventory and warehouse management. The platform also offers modules for automating back-office functions like shipping-related payments reconciliation and return reconciliation.
EasyEcom spent the most on employee benefits which formed 67.5% of the total expenses. This cost jumped 3X to Rs 8.5 crore during the last fiscal year. Notably, this also includes an ESOP cost worth Rs 78 lakh.
IT costs such as server hosting and technical consultancy charges soared to Rs 1.59 crore during FY23 from Rs 67 lakh in FY22. The company also incurred professional, subscription, business promotion, and other admin and operating expenses during the fiscal year.
At the end, the company’s overall cost surged 188.3% to Rs 12.6 crore in FY23 from Rs 4.37 crore in FY22.
As per the company, the rising expenses are followed by significant investments in employee engagement initiatives. Despite these rising costs, EasyEcom claims to have achieved a 5.2x growth over the last 36 months. The company anticipates reaching operational profitability by March 2024.
The company’s losses spiked to Rs 4.4 crore during the last fiscal year from Rs 24 lakh in FY22. On a unit level, EasyEcom spent Rs 1.88 to earn a rupee of operating revenue during FY23.
Check out TheKredible for a complete expense breakdown and year-on-year financial performance and more information about the company.
The startup made the headlines in January 2022 when IndiaMart acquired a 26% stake in EasyEcom for $2 million as part of a Series A round.
The startup secured angel funding in December 2017 from tech industry executives and early-stage investment funds. In October 2019, it raised an undisclosed funding from the early-stage fund Amistad Venture.
Update (Feb 24, 2024): The story has been updated to reflect the cause of the company’s rising expenses and losses in FY23.
