Ninjacart, an agritech startup, saw a sharp reduction in expenses and an increase in margin, leading to a decrease in net loss to INR 1,023 Cr during FY21. Furthermore, the company witnessed a 1.2X surge in operating revenue to INR 967.3 Cr compared to INR 755 Cr in FY21. Additionally, Ninjacart’s EBITDA margin showed improvement from -43% in FY21 to -28.7% in FY22.
Ninjacart, a B2B agritech startup backed by Flipkart, reduced its net loss by 70% to INR 307.9 Cr for the fiscal year ending on March 31, 2022, compared to INR 1,023 Cr for the previous fiscal year, FY21. This remarkable achievement can be attributed to the startup’s efforts to lower its expenses and enhance its margin. Moreover, the Bengaluru-based company not only managed to cut its loss but also witnessed an increase in its top line. Ninjacart’s operating revenue grew 1.2X from INR 755 Cr in FY21 to INR 967.3 Cr.
The startup generates revenue by supplying fruits and vegetables to retailers. In FY22, it earned INR 795.4 Cr by selling vegetables, and the remaining INR 162 Cr was generated through the sale of other products, including staples. By comparison, the startup earned INR 645 Cr by selling vegetables and INR 97.7 Cr from the sale of staples and other products in FY21. Additionally, the startup’s total revenue increased by 27.5% to INR 990.5 Cr in FY22 from INR 776.8 Cr in FY21, which includes earnings from other sources.
Ninjacart’s most significant expense continued to be the procurement of fresh produce, accounting for the majority of its costs. The startup spent INR 916 Cr on purchasing items in FY22, compared to INR 681.5 Cr in FY21.
Interestingly, employee benefit expenses remained almost unchanged. In FY22, Ninjacart spent INR 162.7 Cr on salaries, PF contribution, and other employee benefits, while the amount stood at INR 162 Cr in the previous year. It is worth noting that in late FY22, the startup introduced an employee stock ownership plan (ESOP) worth more than INR 100 Cr.
A significant reason for the decline in total expenses was due to a sharp decrease in fees paid to brokers and transportation costs. In FY22, Ninjacart paid INR 38.7 Cr in fees, while transportation costs were INR 60.8 Cr. In contrast, in FY21, the startup paid INR 74.4 Cr in fees and spent INR 130 Cr on transportation expenses.
Overall, total expenses decreased by 28% to INR 1,298.8 Cr in FY22 from INR 1,799.9 Cr in FY21. The startup had recorded an impairment loss of INR 647 Cr on non-financial assets in FY21, which was absent in FY22.
Ninjacart’s EBITDA margin improved from -43% in FY21 to -28.7% in FY22.
Ninjacart was founded in 2015 by Thirukumaran Nagarajan, Sharath Loganathan, Sachin Jose, Kartheeswaran KK, and Vasudevan Chinnathambi. Initially, the company operated as a B2C business, but later pivoted to a B2B model.
Presently, Ninjacart sources fruits, vegetables, and other groceries from farmers and supplies them to supermarkets, kirana shops, and other retailers. The startup currently operates in over 150 markets. In September 2021, it raised $145 Mn from Flipkart at a valuation of over $800 Mn.
Ninjacart, which is backed by Tiger Global, launched a $25 Mn fund to invest in agritech startups in the previous year. The startup competes with other B2B players like WayCool Foods and Udaan, the latter being a unicorn. While WayCool experienced a 142% increase in losses to INR 360.5 Cr in FY22, Udaan’s losses surged to INR 3,076 Cr.
