New Delhi, March 19 B2B manufacturing and automation startup Groyyo reported a 14.4 per cent drop in revenue to Rs 421 crore in FY24, compared to Rs 492 crore in the previous year, according to its latest financial filings.
The majority of Groyyo’s revenue came from product sales, while commissions and subscriptions contributed to its earnings. The company’s losses grew by 8.8 per cent to Rs 74 crore in FY24 from Rs 68 crore the previous year.
The Tiger Global-backed company, which had achieved a 19X growth in FY23, also saw a decline in its scale in the fiscal year ending March 2024.
One of the primary reason behind the mounting losses is the company’s expenses in the financial year 2024, which stood at Rs 520 crore.
The cost of procuring goods remained a significant expense, making up 78.65 per cent of total costs. However, with the decline in scale, procurement costs dropped by 13.5 per cent to Rs 409 crore in FY24.
Meanwhile, employee benefit expenses surged by 81.5 per cent to Rs 49 crore. Other operational costs, includes legal fees, advertising, asset write-offs, and travel.
Groyyo spent Rs 1.24 to earn every rupee, while its Return on Capital Employed (ROCE) and EBITDA margin worsened to (-) 46.15 per cent and (-)13.45 per cent, respectively.
According to reports, the company’s expenses related to employee stock options (ESOPs) and provisions for receivables from older domestic business transactions contributed to the financial strain.
The company, founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, helps small and medium businesses digitise their manufacturing processes and connect with national and international clients.
According to reports, Groyyo has raised over $50 million through debt and equity, including a $40 million Series A round led by Tiger Global.
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