Four-year-old rural tech startup Faarms’ scale dropped 22% to Rs 22.5 crore in the fiscal year ending March 2023 from its preceding fiscal’s Rs 28.9 crore.
Along with its overall revenue, its revenue from operations also saw a downward spiral to Rs 20 crore, a 28% deceleration from FY22’s Rs 28 crore.
The Bengaluru-based company last secured a Seed round of over Rs 79 crore in mid-2022 led by the likes of Cornelius Boersch, Koh Boon Hwee, and Apoorva Ranjan Sharma.
Post the infusion of the funding amount, while founders held a cumulate of over 15% shares of the company, Faarms Global Venture a major portion of over 70%.
The startup’s current valuation stands at Rs 181.8 crore.
Following the drop in revenue, its expenditure for the same fiscal year shrunk to Rs 27.6 crore. This was a 34% drop from FY22’s Rs 42 crore.
Transportation and distribution costs contributed over 70% of this expense. Employee benefits and legal and professional charges took up over 7% and a little over 1%.
Founded by Taranbir Singh, Alok Duggal, and Aditya Khanna, agritech startup FAARMS is a one-stop solution for farmers, it is engaged in the business of buying and selling of agricultural products.
It provides doorstep delivery of products and services that include seeds, fertilizers, pesticides, and animal feed among others. Apart from this, the firm also offers various insurance and loan facilities for farmers.
In FY23, the firm’s losses cut down by over 72% to Rs 3.8 crore as compared to FY22’s Rs 14 crore. Both its current EBITDA margin and ROCE improved to -22.66% and -12.82% respectively.