Ripplr, a technology distribution and logistics platform, secured $40 million in funding in May 2023. This substantial investment was fueled by its impressive 2.7X growth during the fiscal year ending in March 2023. Additionally, the Bengaluru-based company managed to reduce its losses by 32% during the same period.
According to its annual financial statements filed with the Registrar of Companies, Ripplr’s gross revenue soared 2.7X to Rs 740 crore in FY23 from Rs 275 crore in FY22.
Ripplr, founded four years ago, offers a plug-and-play Distribution Network as a Service (DaaS) to digitize and manage brand operations. It serves over 80,000 tier 2 retailers and has partnerships with FMCG brands such as HUL, Britannia, ITC, Nestle, Mondelez, Colgate Reckitt Benckiser, Godrej, Dabur, and Nivea, among others.
The majority of Ripplr’s gross revenue, 89%, came from goods sales, which tripled to Rs 656 crore in FY23. Revenue from logistics and warehousing also contributed to Ripplr’s income.
The cost of material consumed accounted for 77.5% of Ripplr’s overall expenditure, which surged 3X to Rs 624 crore in FY23 from Rs 203 crore in FY22. Other expenses, including employee benefits, rent, transportation, legal fees, subcontractors, and overheads, increased the total expenditure to Rs 805 crore in FY23 from Rs 285 crore in FY22.
Thanks to its 2.7X growth and controlled spending, the Fireside Ventures-backed company managed to reduce its losses by 32% to Rs 62 crore in FY23 from Rs 91 crore in FY22. Its Return on Capital Employed (ROCE) and EBITDA margin stood at -29% and -7.4%, respectively, with a cost of Rs 1.09 incurred to earn a rupee in FY23.
Ripplr has raised over $50 million across multiple funding rounds, including the $40 million Series B round led by Fireside Ventures in May of the previous year. According to data from TheKredible, 3One4 Capital holds the largest external stake at 17.87%, followed by Zephyr Peacock India and Sojitz Corporation.
Focused on a crucial yet often overlooked aspect of business, Ripplr’s services ensure long-term client retention once onboarded, particularly due to its Distribution Management System (DMS) integration. Although this may result in longer sales cycles, it establishes a sustainable model deeply tied to the growth and success of its clients. Ripplr’s current scale reflects the significant progress it has achieved, which has clearly impressed its investors as well.
