Agritech startup BigHaat experienced remarkable growth, achieving over a fivefold increase in gross revenue during the fiscal year ending March 2023. However, in tandem with its pursuit of rapid expansion, the company also witnessed a proportional rise in losses during the same period.
BigHaat’s gross revenue skyrocketed by 5.3 times, reaching Rs 643 crore in FY23 from Rs 120 crore in FY22, according to its consolidated financial statements filed with the Registrar of Companies.
Founded in 2015, BigHaat utilizes technology to offer a diverse range of solutions and services to farmers, aiding them in optimizing agricultural practices and boosting productivity.
Market linkages constituted 92% of the overall gross revenue, increasing 6.6 times to Rs 594 crore in FY23. The remaining income sources include input business, exports, marketplace commissions, and others.
In tandem with its scale of growth, the cost of procurement emerged as the largest cost center, accounting for 92.5% of the total expenditure. This cost surged 5.4 times to Rs 623 crore in FY23 from Rs 115 crore in FY22.
Employee benefits, selling cum distribution, legal-professional, information technology, fulfillment, and other overheads contributed to the total expenditure, which reached Rs 673 crore in FY23 from Rs 128 crore in FY22.
The increase in procurement and employee benefits resulted in a significant rise in losses, increasing 5.8 times to Rs 35 crore in FY23 from Rs 6 crore in FY22. The company’s ROCE and EBITDA margin stood at -40% and -4.3%, respectively. On a unit level, it spent Rs 1.05 to earn a rupee in FY23.
BigHaat has raised $29 million to date and was last valued at $58 million. According to TheKredible, JM Financial is the largest external stakeholder with 27.29%, followed by Ankur Capital and Beyond Next Ventures. Co-founders Sateesh Nukala and Sachin Nandwana cumulatively command 23.29% of the company.
