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B2B e-commerce platform Power2SME's FY23 revenue jumps 50% to Rs 1,056 crore

Sumit Vishwakarma
New Update
Power2SME FY23

B2B e-commerce platform Power2SME has reported a 50% growth in its revenue from Rs 703 crore in FY22 to Rs 1,056 crore in FY23. The growth was due to a 50% increase in gross margin and a strategic reduction in losses by 9%, Entrackr reported. 

The startup accomplished this feat through various measures, including cutting down on employee benefits, among other costs, showcasing a blend of growth and improved unit economics.

Core business and revenue sources

Power2SME stands out by providing essential raw materials—ranging from steel to chemicals to polymers—and financial services tailored for small and medium-sized enterprises (SMEs).


The bulk of its revenue, accounting for 99%, comes from the sale of goods. The remainder is generated through interest and finance-related operations, with an additional Rs 6 crore from interest on investments, pushing the total revenue to Rs 1,063 crore in FY23.

Expenditure and efficiency

Despite the revenue spike, the company managed its expenses wisely. The cost of procurement, which accounts for a significant chunk of its expenditures, was kept under control, accounting for 93.4% of the total expenses. Overall, the company's expenditures climbed to Rs 1,091 crore in FY23 from Rs 740 crore in FY22.

Financial health and prospects

The concerted efforts in optimizing operations have enabled Power2SME to trim its losses by 9%, reducing them to Rs 28.5 crore in FY23. Notably, the startup's Return on Capital Employed (ROCE) and EBITDA margin have shown signs of improvement. On a unit level, the firm's spending efficiency has been fine-tuned to spend Rs 1.03 to earn a rupee.

The startup has raised over $77 million in funding so far from investors, including InnoVen Capital, Accel, Nandan Nilekani, Kalaari Capital, and International Finance Corporation.