Apna Mart’s Revenue Surges 85% To INR 59 Cr In FY24

SUMMARY

The growth in its top line came at the cost of its bottom line, with Apna Mart’s net loss jumping 52% YoY to INR 33.1 Cr in FY24

Founded in 2022, Apna Mart guarantees 15-minute delivery of grocery and FMCG products in Tier II & III cities

Apna Mart, which has adopted a franchise model for its quick commerce operations, is raising INR 214 Cr from investors like Fundamentum, Accel and Peak XV

Franchisee-led quick commerce startup Apna Mart reported a near 2X jump in its standalone operating revenue in the financial year 2023-24. Its revenue from operations zoomed 85% to INR 59.4 Cr in FY24 from INR 32.2 Cr in the previous fiscal year, as per its filings accessed from Tofler.

Founded in 2022 by Abhishek Singh and Chetan Garg, Apna Mart provides 15-minute grocery and retail delivery services in Tier II & III cities. It competes against the likes of Zomato-owned Blinkit, Swiggy Instamart, and IPO-bound Zepto in the quick commerce market.

Apna Mart sells daily essentials, personal and pet care products, beverages and electronics via its brick and mortar stores and app.

Including other income of INR 3.6 Cr, the Bengaluru-based startup racked up INR 63 Cr in total revenue during the fiscal year ended March 2024.

However, the growth in the top line came at the cost of its bottom line. Apna Mart’s net loss surged 52% to INR 33.1 Cr during the year under review from INR 21.8 Cr in FY23.

EBITDA loss also surged 47% to INR 31.5 Cr from an EBITDA loss of INR 21.5 Cr in FY23.

It must be noted that unlike Blinkit, Instamart and Zepto that have adopted a dark store model for their quick commerce operations, Apna Mart leverages its franchise outlets for operational efficiency.

The startup claims to have an offline presence in 14 cities, including Ranchi, Bhilai, Raipur, Asansol and Kolkata.

Where Did Apna Mart Spend In FY24?

While Apna Mart’s overall expenses shot up 78% to INR 96 Cr in FY24 from INR 54 Cr in the previous fiscal year, the increase in revenue still outpaced the surge in expenditure.

Procurement Costs: Since Apna Mart is essentially a marketplace, its biggest expense was procurement of goods. The spending under this head jumped 85% to INR 58.4 Cr during the year under review from INR 31.6 Cr in FY23.

Employee Costs: The startup spent INR 16.7 Cr towards employee benefit expenses during the year ended March 2024, a jump over 83% from INR 9.1 Cr spent a year ago.

Other Expenses: The spending under this head rose 48% to INR 19.3 Cr in FY24. Of this, Apna Mart spent INR 3.4 Cr on advertisement and publicity and INR 2.4 Cr on logistics and packaging fee.

It is pertinent to note that Apna Mart is raising INR 214 Cr (about $25 Mn) in a funding round led by Nandan Nilekani’s Fundamentum. The round will also see Accel India join Apna Mart’s cap table. Of the total funding, INR 176 Cr will be equity and the rest will be debt.

Prior to this, it raised about $15 Mn in funding from investors such as Peak XV Partners, Sparrow Capital, Alteria Capital, 2am VC, among others.

Apna Mart’s latest fundraise comes amid rising competitive intensity in India’s rapidly growing quick commerce sector. Several quick delivery startups have sprung up in the space in recent months, including the likes of Swish, Zing, and Snabbit. These startups are targeting sectors outside the traditional grocery delivery category that quick commerce popularised.

These new-age tech companies, attempting to carve out a niche for themselves in the already crowded space, are also scooping up funds from notable investors. In March, 10-minute food delivery startup Swish raised $14 Mn in its Series A funding round from investors, including Accel. Prior to that, Snabbit, which offers on-demand services by trained personnel under 15 minutes, secured $5.5 Mn (around INR 47.6 Cr) in its Series A funding round led by Elevation Capital.