Medikabazaar rebounds with Rs 1,355 Cr gross revenue in FY24

B2B medical supply chain platform Medikabazaar reported a 50% surge in gross revenue from operations for the fiscal year ending March 2024, rebounding from a 41% decline in FY23. However, the company's losses widened by 30% to Rs 394.8 crore during the same period.

Medikabazaar’s operating gross revenue grew to Rs 1,355.6 crore in FY24 from Rs 908.5 crore during the previous fiscal year, according to its consolidated financial statements filed with the Registrar of Companies. 

Medikabazaar is a B2B medical supply chain platform that enables hospitals to discover medical supplies and compare specifications and prices in real time. Its product range includes hospital equipment, diagnostic devices, consumables, and dental tools. In FY24, 98% of the company’s revenue, Rs 1,328.6 crore, came from the sale of these products.

The Mumbai-based company also earned Rs 51.3 crore from interest on fixed deposits, non-current investments, and bonds, taking its total revenue to Rs 1,407 crore in the fiscal year ending March 2024.

Procurement of supplies and equipment was the largest cost center for the company, accounting for 79% of its total expenses. With the increase in scale, this cost rose by 43% to Rs 1,279 crore in FY24.

Employee benefit expenses rose nearly 40% year-on-year to Rs 140 crore. The company also booked a non-cash expense of Rs 66.5 crore towards doubtful debts and advances, likely reflecting delayed or potentially unrecoverable payments for supplies sold on credit.

Advertisement, legal and professional fees, transportation, travel expenses, and other overheads drove the company’s total expenditure to Rs 1,621 crore in FY24, a 44% increase from Rs 1,126.5 crore in FY23.

With expenses and total revenue growing at a similar pace, the company’s losses rose 30% to Rs 394.5 crore from Rs 303.4 crore. Notably, these losses include exceptional items totaling Rs 178.65 crore, which cover allowance for doubtful debts and advances, inventory provisions, write-offs of balances, and unclassified expenses of Rs 88.6 crore.

At the unit level, it spent Rs 1.2 to earn a rupee of operating revenue. By the end of FY24, Medikabazaar’s total current assets stood at Rs 1,176.56 crore, including cash and bank balances of Rs 62.76 crore.

According to the startup data intelligence platform TheKredible, Medikabazaar raised over $160 million across multiple rounds of funding including a $65 million Series D round raised in April 2022 at a $700 million valuation.

In April, Medikabazaar removed former CEO Vivek Tiwari over allegations of malicious and fraudulent activities. Dinesh Kumar Lodha has been serving as the company’s Group CEO since August last year.