Strong Revenue Growth Amid Controlled Losses
ApnaKlub, a B2B e-commerce platform that connects retailers, kirana stores, and FMCG brands, has reported impressive growth in its financial performance for the fiscal year ending March 2024. The company’s gross revenue nearly doubled, reaching Rs 536.78 crore, up from Rs 278.32 crore in FY23, indicating robust business momentum despite the challenges in the sector.
The company’s revenue growth was driven by strong sales in various product categories, with personal care products leading the charge, contributing Rs 250 crore to total sales in FY24. Beverages followed closely with Rs 95.34 crore, while home care and processed foods brought in Rs 82 crore and Rs 80.6 crore, respectively. In addition to operating income, ApnaKlub earned Rs 5 crore from interest on long-term investments, pushing total revenue to Rs 541 crore for the year.
Managing Expenses and Losses
While ApnaKlub achieved significant revenue growth, it also focused on managing its costs. The cost of materials, which forms the bulk of its expenses, surged by 84.83% to Rs 508.05 crore, accounting for 86% of the total expenditure. Employee benefit expenses increased by 33.84% to Rs 31.6 crore, while transportation costs rose by 41.56% to Rs 11.41 crore. Other operational expenses contributed an additional Rs 38.69 crore, bringing the total expenses to Rs 589.75 crore, an increase of 77.4% from the previous fiscal year.
Despite these increases, ApnaKlub managed to reduce its net losses by 13.84%, bringing them down to Rs 47.93 crore in FY24, compared to Rs 55.63 crore in FY23. The company’s adjusted EBITDA loss was recorded at Rs 42.63 crore, showing some progress in operational efficiency despite continuing losses.
Financial Metrics and Outlook
The company’s return on capital employed (ROCE) and EBITDA margin stood at negative 79.36% and negative 8.25%, respectively. On a unit basis, ApnaKlub spent Rs 1.10 for every rupee of operating revenue. Despite these negative metrics, the company’s cash position remains healthy, with cash and bank balances of Rs 39.13 crore and current assets of Rs 90.55 crore.
ApnaKlub has raised a total of Rs 190.78 crore (around $24.4 million) in funding to date, with investments from Tiger Global, Blume Ventures, Whiteboard Capital, and Surge Ventures. These investors have supported the platform as it scales its operations and refines its business model for future growth.
ApnaKlub’s performance in FY24 demonstrates strong revenue growth driven by high-demand FMCG products, coupled with effective cost control measures. While the company continues to report losses, its improved financial health, cost management strategies, and solid cash reserves position it for future success as it expands its B2B e-commerce platform across the market.
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