DeHaat, a full-stack agritech marketplace, achieved a milestone in FY24, with its gross merchandise value (GMV) growing by 36% to reach ₹2,674.8 crore. The company also managed to trim its losses by a significant 34%, signaling a more efficient bottom line amid expanding operations.
Revenue Growth Driven by Agri Output Sales
DeHaat’s revenue growth was primarily fueled by a 49.2% increase in agri output sales, contributing ₹2,121.6 crore or 79.3% of the total revenue. This focus on output sales has solidified DeHaat’s role as a major player in India’s agritech market. Sales of agri inputs, however, remained relatively flat, seeing a modest 1.1% increase to ₹545.82 crore.
In addition to its main revenue streams, DeHaat earned ₹45 crore from interest and other income sources, bringing its total revenue to ₹2,720 crore for FY24.
Rising Expenses but Improved Efficiency
The company’s cost of materials surged by 29.6% to ₹2,414 crore, accounting for 81.4% of total expenses. Transportation costs also spiked by 76.8% to ₹89.42 crore, while employee expenses fell by 13% to ₹206.86 crore. Overall, DeHaat’s total expenses rose by 15.2% to ₹2,965 crore, yet the company’s losses declined to ₹244.68 crore from ₹371 crore in FY23. On a per-unit basis, DeHaat spent ₹1.11 to generate each rupee in revenue, demonstrating improved cost management despite increased expenses in some areas.
Financial Highlights:
- ROCE: -143.96%
- EBITDA Margin: -39.69%
Competitors and Market Position
In the competitive agritech space, DeHaat is up against players like Waycool and Ninjacart. While Waycool expects revenue of ₹1,600 crore for FY24, Ninjacart reported ₹2,002 crore in revenue in the previous fiscal year, making DeHaat the current leader among its peers.
The company has raised around $230 million to date, with a recent valuation of over $705 million. Peak XV, DeHaat’s largest investor, holds a 13% stake, followed by co-founder Shashank Kumar and Sofina Ventures.
Path to Profitability Remains Challenging
Despite revenue growth and cost controls, DeHaat faces a tough journey toward profitability. With expenses like material costs relatively inflexible, the company may need further investment rounds, which could lead to shifts in ownership as investors demand results. While DeHaat’s scale-up efforts are paying off, breaking even will require continued strategic focus and perhaps fresh capital to sustain its market position.
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