Synopsis
Falca, an agritech startup, reported a dramatic increase in net losses for FY24, reaching Rs 15 crore due to a significant rise in expenses. The company's procurement costs and operational expenditures have surged, impacting its EBITDA margin and cash reserves.Key Takeaways
- Net loss increased to Rs 15 crore in FY24.
- Expenses surged by 30.2 percent to Rs 384 crore.
- Material costs accounted for 94 percent of total expenses.
- Employee benefits doubled to Rs 10 crore.
- Gross revenue rose to Rs 368 crore in FY24.
Bengaluru, March 9 (NationPress) The full-stack agritech supply chain startup Falca has witnessed a significant escalation in its net losses for the fiscal year 2023-24 (FY24), with the figure expanding threefold to Rs 15 crore, compared to Rs 5 crore in the preceding fiscal year (FY23).
The escalating losses can primarily be attributed to a surge in expenses, which increased by 30.2 percent to Rs 384 crore in FY24.
The largest contributor to the company's costs was the procurement of materials, representing 94 percent of total expenditures.
Material costs alone saw a rise of 27 percent to Rs 362 crore in FY24, correlating with the company's expanding operations. Employee benefit expenses doubled, reaching Rs 10 crore, while finance costs surged by 50 percent to Rs 3 crore. Additional operational expenses amounted to another Rs 9 crore for the year.
The company’s EBITDA margin fell from (-)1 percent in FY23 to (-)3.14 percent in FY24, indicating ongoing challenges to profitability.
On a per-unit basis, Falca spent Rs 1.04 to generate every Rs 1 in revenue. Furthermore, its cash and bank balances halved to Rs 4 crore, and its current assets dropped sharply from Rs 53.5 crore to Rs 24.5 crore.
According to the consolidated financial statement, the company’s gross revenue increased to Rs 368 crore in FY24, up from Rs 289 crore in FY23.
Over the last five years, the company has exhibited impressive growth, with GMV skyrocketing 65 times from Rs 5.6 crore in FY20 to Rs 368 crore in FY25.
As per startup data platform TheKredible, Falca has secured around $3 million in funding thus far, with Kingston Smiler and Inflection Point Ventures as its principal investors.
Falca operates through four core products, each catering to distinct segments of the agricultural supply chain.
Suggi supplies agricultural inputs such as seeds and pesticides, Samrat provides advisory services and market connections. Siri serves as a trading platform for farmers and buyers, while Sampoorna delivers digital solutions aimed at enhancing farm productivity.
The sales of these products and services constituted the company’s exclusive revenue source in FY24.
