ReshaMandi, a B2B marketplace for natural fiber supply chain, reported a 20x growth in gross revenue to go past the Rs 400 crore mark in the fiscal year ending March 2022.
The three-year-old B2B startup, which raised $30 million in a series A round in October last year, saw its gross revenue rising to Rs 413.8 crore in FY22 from Rs 20.6 crore in FY21, according to the company’s annual financial statements with the Registrar of Companies.
The RoC filings show a 20x growth in the sale of natural fibers like silk, cotton, wool, and others from its marketplace in FY22. The Bengaluru-based firm also earned Rs 1.8 crore from interest on long-term bank deposits in the said financial year.
The startup saw the expenditure on the procurement of materials increase by 19.8X to Rs 390.6 crore in FY22, up from Rs 19.7 crore in the previous financial year. This expense was also the largest cost center for the company.
ReshaMandi’s expense on employee benefits rose 15.8X to Rs 25.4 crore in FY22. The rise in costs on this is probably due to ReshaMandi’s efforts to keep up with the scale by hiring more resources. Another cost center – advertisement and promotion – inflated by 51X to Rs 15.3 crore in FY22. Legal and professional fees accounted for Rs 10.3 crore, shooting up the overall expense by 20.9X to Rs 474.3 crore in FY22.
While the company managed to scale its revenue, its losses shot up 27.9x to Rs 58.6 crore in FY22. The company’s cash outflow from operations stood at Rs 152 crore in the last financial year.
The ROCE and EBITDA margins were recorded at negative 42.19% and 12.95%, respectively. Overall, the B2B firm shelled out Rs 1.15 to earn a single unit of operating revenue.
Moving on to the latest numbers, ReshaMandi says it posted a three-fold growth in revenue to hit Rs 1,248 crore in the first three quarters of the ongoing fiscal year (FY23). The company further claims it has turned EBITDA positive in Q3 FY 23 and hopes to become net profit in the next two quarters of the fiscal year.
Founded in 2020, ReshaMandi says it works with 100,000 farmers, 10,000 reelers, 17,500 weavers, and 18,500 retailers. Besides the marketplace, the firm also provides insights like crop advisory to silk farmers, design inputs to weavers, and helps connect them with mills and retailers, and more. ReshaMandi recently forayed into the direct-to-consumer vertical. It has also begun providing credit services through a new fintech platform, ReshaMudra, which made its debut in August last year.
Since its inception, the startup has raised more than $50 million in both debt and equity.
ReshaMandi’s exponential growth reflects the prospects of India’s textile sector, especially for those who can address the supply chain constraints effectively. The startup appears to be well positioned to tap this segment, and the launch of the fintech platform ReshaMudra indicates its deep understanding of the market. It’s most likely the company maintains the growth momentum at the same pace in the coming months.