Groyyo's Revenue Declines by 14.4% in FY24, Losses Increase by 9%

Synopsis

On March 19, Groyyo, a B2B manufacturing and automation startup, disclosed a 14.4% revenue drop to Rs 421 crore for FY24, with losses rising by 8.8% to Rs 74 crore. The company faced increased expenses totaling Rs 520 crore, leading to financial strain despite previous rapid growth.

Key Takeaways

14.4% revenue decline to Rs 421 crore in FY24.
Losses increased by 8.8% to Rs 74 crore.
Operational expenses surged to Rs 520 crore.
Procurement costs accounted for 78.65% of total expenses.
Groyyo raised over $50 million in funding.

New Delhi, March 19 (NationPress) The B2B manufacturing and automation firm Groyyo has reported a 14.4% decline in its revenue, which now stands at Rs 421 crore for FY24, down from Rs 492 crore in the prior year, as detailed in its recent financial disclosures.

The bulk of Groyyo's income was generated from product sales, complemented by commissions and subscriptions. The company's losses escalated by 8.8%, amounting to Rs 74 crore in FY24, compared to Rs 68 crore in the previous fiscal year.

Backed by Tiger Global, Groyyo, which had experienced a remarkable 19X growth in FY23, encountered a downturn in its scale during the fiscal year ending in March 2024.

A key factor contributing to the rising losses is the company's expenses for the fiscal year 2024, which reached Rs 520 crore.

Procurement costs remained a major expenditure, accounting for 78.65% of total costs. Nevertheless, as the scale diminished, these costs saw a 13.5% reduction to Rs 409 crore in FY24.

Meanwhile, expenses related to employee benefits surged by 81.5% to Rs 49 crore. Other operational costs include legal fees, advertising, asset write-offs, and travel expenses.

Groyyo's financial efficiency was reflected in its expenditure of Rs 1.24 to generate every rupee, while its Return on Capital Employed (ROCE) and EBITDA margin deteriorated to (-)46.15% and (-)13.45%, respectively.

As of the end of FY24, the company's total assets were valued at Rs 256 crore, which included Rs 99 crore in cash and bank holdings, according to its financial records.

Reports indicate that expenses related to employee stock options (ESOPs) and provisions for receivables from previous domestic business transactions further intensified the financial challenges.

Founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, Groyyo aids small and medium enterprises in digitizing their manufacturing processes and establishing connections with both national and international clients.

Groyyo has successfully raised over $50 million through a combination of debt and equity, including a $40 million Series A funding round led by Tiger Global.