B2B marketplace Jumbotail's FY23 losses doubled from Rs 124Cr to Rs 264Cr

B2B marketplace Jumbotail, a wholesale and food grocery platform, has more than doubled its losses from the previous year's Rs 124.7 crore to Rs 264 in FY23.

However, The startup did experience a notable surge in revenue, with its operations revenue jumping to Rs 819 crore, a 117% increase from the previous year’s Rs 377 crore.

What was the major financial challenge for Jumbotail?

While the Jumbotail failed to decrease its losses, The major challenge was rising expenses. The startup's total expenses in FY23 also saw a steep rise, reaching Rs 1,114 crore compared to Rs 524 crore in the previous year. A major contributor to these expenses was the purchase of stock-in-trade, which soared to Rs 761 crore from Rs 352 crore.

Jumbotail investors

Founded by former Indian army veteran S Karthik Venkateswaran and his Stanford classmate Ashish Jhina, Jumbotail has raised Rs 75 crore in venture debt from Alteria Capital and Innoven Capital in March 2023.

The startup earlier said that it plans to use these funds to enhance various aspects of its business, including hiring in areas like deep sourcing, category management, product management, AI/ML, and marketing. 

So far, It has raised over $125 million in equity funding from investors, including Heron Rock Fund, Kalaari Capital, and Nexus Venture Partners. Additionally, It claims to have achieved a 60% market penetration within the addressable market of Kirana stores across 50 cities.

Expansion and profitability goals

Earlier this year, Jumbotail’s co-founder, Ashish Jhina, highlighted the company’s expansion, revealing that the gross merchandise value (GMV) doubled to Rs 2,262 crore in FY23 from Rs 1,128 crore in FY22.

He also said that the company has achieved profitability in one-third of its operating cities, where net revenues have surpassed the cost of operations. It aims to extend this profitability to all its cities in the next 12 months, leveraging AI-driven products for growth and cost optimization, he earlier noted. 

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