Bengaluru-based B2B e-commerce platform Udaan saw minimal growth in FY24, with gross merchandise value (GMV) rising 1.7% to Rs 5,706.6 crore from Rs 5,609.3 crore in FY23, according to filings by group entity Trustroot Internet in Singapore. For context, Udaan’s GMV was Rs 9,900 crore in FY22, indicating a deceleration in growth over the past two years.
However, the company reported a 19.4% reduction in net losses, bringing them down to Rs 1,674.1 crore in FY24 from Rs 2,075.9 crore in the previous fiscal year. In total, Udaan’s expenses decreased by 4.4% to Rs 7,407.6 crore in FY24, down from Rs 7,750.8 crore in FY23. This is despite material costs, which comprised 75.3% of total expenses, rising 4.2% to Rs 5,576.8 crore, during the fiscal. Employee benefits were reduced by 35.4%, logistics and packaging costs by 16.8%, outsourced manpower expenses by 39.3%, and legal and professional costs by 18.8%. ESOP costs during the fiscal year amounted to Rs 307.1 crore.
Also ReadTitan Q2 profit declines 23 per cent, misses estimates
“Our solid operational performance this year stems from the strategic business reorganisation initiated 8-9 quarters back and disciplined cost optimisation initiatives,” said Kiran Thadimarri, SVP Finance at Udaan, in a post on LinkedIn. He added that the firm’s EBITDA burn was reduced by 40% year-on-year to approximately Rs 900 crore. In addition to cost-cutting, Thadimarri pointed to improvements in key operational metrics. As of the current calendar year (YTD in CY24), Udaan’s revenue has grown by 60%, driven by a 50% increase in daily transacting buyers, while monthly repeat rates among customers exceeded 90%, he added. Both contribution and gross margins improved by 300 and 200 basis points, respectively, and buyer wallet share rose by 20%, Thadimarri added. “These metrics reflect the strength of our customer engagement and market penetration,” he noted.
Also Read Dell Laptops retains title of #1 Most Desired Brand; reveals TRA’s report Innov8 gears up to double its co-working footprint by next year Marico Q2 net up 20 per cent, beats estimate Whatfix eyes profitability in next 7-8 quarters
Last month, Udaan raised around $35 million in debt funding from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital. This adds to a $340 million equity raise in December 2023. So far, the startup has raised a total of around $1.88 billion.
» Read More
