Ninjacart, a B2B agritech startup backed by Flipkart, has achieved a significant milestone as its operating revenue crossed the INR 1,000 crore mark in the financial year ended March 31, 2023. The company reported sales of INR 1,153.4 crore in FY23, marking a 19% increase from INR 967.3 crore in the previous fiscal year (FY22).
The startup primarily generates revenue by selling fresh fruits and vegetables directly sourced from farmers to retailers such as restaurants, shops, and vegetable sellers. Founded in 2015 by Thirukumaran Nagarajan, Sharath Loganathan, Sachin Jose, Kartheeswaran KK, and Vasudevan Chinnathambi, Ninjacart initially operated as a B2C business before pivoting to the B2B model.
In FY23, Ninjacart’s total revenue, including other income, amounted to INR 1,212.3 crore, reflecting a notable increase of 22.3% from INR 990.9 crore recorded in FY22. However, despite the growth in operating revenue, the startup reported a 6% rise in losses, reaching INR 326.3 crore in FY23 compared to INR 307.9 crore in FY22.
Examining the startup’s expenditure, total spending rose by 18% to INR 1,538.7 crore in FY23 from INR 1,299.8 crore in FY22. Procurement cost accounted for the majority of Ninjacart’s total expenditure, comprising 71% of the expenses. The company spent INR 1,087.8 crore on procurement in FY23, representing a 19% increase from INR 915.9 crore in FY22.
Employee benefit expenses also surged, with Ninjacart allocating INR 246.8 crore for employee salaries and other benefits in FY23, marking a significant 52% increase from INR 162.7 crore in the previous year. This rise suggests a potential expansion in the startup’s workforce during the period.
On a positive note, Ninjacart managed to reduce its transportation costs by 27% to INR 44.1 crore in FY23 from INR 60.8 crore in FY22. The transportation cost represents the amount spent by the company to transport its fresh stock. The EBITDA margin for FY23 improved to -26.2% from -28.7% in FY22.
Last year, Ninjacart made its foray into the Brazilian market through a partnership with Arado, an agribusiness marketplace. With over $350 million raised in funding to date, the startup boasts notable investors such as Tiger Global, Flipkart, and Accel. In its competitive landscape, Ninjacart faces competition from companies like WayCool Foods and FarmLink.
