Flipkart-Backed Ninjacart’s Net Loss Narrows 70% To INR 308 Cr In FY22

Flipkart-backed B2B agritech startup Ninjacart’s net loss narrowed 70% to INR 307.9 Cr in the financial year ending March 31, 2022 from INR 1,023 Cr in the financial year 2020-21 (FY21) as its expenses declined and margin improved.

The Bengaluru-based startup didn’t only manage to cut down its loss but also saw an increase in its top line. Ninjacart’s operating revenue grew 1.2X to INR 967.3 Cr from INR 755 Cr in FY21.

The startup earns revenue by selling fruits and vegetables to retailers. In FY22, it earned INR 795.4 Cr from selling vegetables, while the remaining INR 162 Cr was generated through sales of staple and other products. In comparison, the startup earned INR 645 Cr by selling vegetables in FY21 and INR 97.7 Cr through sale of staples and other products. 

Including other income, the startup’s total revenue jumped 27.5% to INR 990.5 Cr from INR 776.8 Cr in FY21.

On the expenses front, procurement of fresh produce continued to remain the biggest cost for Ninjacart. It spent INR 916 Cr for purchasing goods in FY22 as against INR 681.5 Cr in FY21. 

Interestingly, employee benefit expenses remained almost unchanged. In FY22, the startup spent INR 162.7 Cr on salaries, PF contribution, and other employee benefits. The number stood at INR 162 Cr in the previous year. It must be noted that Ninjacart rolled out an employee stock ownership plan (ESOP) worth more than INR 100 Cr in late FY22.

One of the reasons for the decline in total expenses was a sharp fall in commission paid to the agents and transportation cost. In FY22, Ninjacart paid INR 38.7 Cr as commission while transportation cost stood at INR 60.8 Cr. In FY21, it had paid INR 74.4 Cr as commission and spent INR 130 Cr on transportation expenses. 

Overall, total expenses declined 28% to INR 1,298.8 Cr in FY22 from INR 1,799.9 Cr in FY21. The startup had recorded INR 647 Cr as impairment loss on non-financial assets in FY21 which was absent in FY22. 

Ninjacrat’s EBITDA margin improved to -28.7% in FY22 from -43% in FY21. 

Founded by Thirukumaran Nagarajan, Sharath Loganathan, Sachin Jose, Kartheeswaran KK and Vasudevan Chinnathambi in 2015, Ninjacart initially started as a B2C business. However, it later pivoted to a B2B model, under which it currently sources fruits, vegetables and other groceries from farmers and supplies to supermarkets, kirana stores and other retailers. 

The startup operates in over 150 markets currently. It last raised $145 Mn from Flipkart at a valuation of over $800 Mn valuation in September of 2021. 

Last year, the Tiger Global-backed startup also launched a $25 Mn fund to invest in agritech startups. Ninjacart competes with the likes of WayCool Foods and B2B unicorn Udaan. 

While WayCool saw its losses widen by 142% to INR 360.5 Cr in FY22, Udaan’s losses jumped to INR 3,076 Cr.

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