Tech-driven yarn marketplace, The Yarn Bazaar, saw its revenue drop by over 50% in FY24 to Rs 41.17 crore from Rs 83.75 crore in FY23.
Founded in 2019 by Pratik Gadia, The Yarn Bazaar has built a modern, efficient, and transparent managed marketplace for yarns, enabling buyers and sellers to discover real-time prices, trends, and insights. The Bengaluru-based B2B startup also offers flexible, unsecured financing to improve seller margins and reduce buyer procurement costs.
The company has raised a total of Rs 16.1 crore over three funding rounds, with its latest round being a Pre-Series A in June 2023. Notable investors include Shaadi.com’s Anupam Mittal.
The founder, Pratik Pradip Gadia, holds the majority stake at 41.85%, while the ESOP pool accounts for 12.58%. Anupam Mittal owns 1.75% of the company.
In line with the revenue decline, expenses also fell to Rs 48.13 crore in FY24 from Rs 86.25 crore in FY23. However, the company’s net loss widened by over 2.6x, increasing to Rs 5.01 crore from Rs 1.92 crore in the previous fiscal.
Employee benefit costs rose significantly in FY24, making up 10.7% of total expenses, up from just 2.6% in FY23. Advertisement costs also grew to 1% of expenses, compared to 0.08% the previous year. Cost of materials, which formed 95.7% of FY23 expenses, dropped to 70.5% in FY24, indicating a shift in expense distribution towards people and growth functions.
The company’s EBITDA margin declined sharply from -2.82% in FY23 to -16.55% in FY24, while ROCE dropped from -39.74% to -67.33%, reflecting deeper operational inefficiencies and rising losses.