Medikabazaar Slips Into Red, Posts INR 20.8 Cr Loss In FY22

Mumbai-based B2B healthcare supply chain startup Medikabazaar slipped into the red in the financial year ending March 31, 2023. The CDC-backed soonicorn startup reported a net loss of INR 20.8 Cr in the financial year 2021-22 (FY22) as against a net profit of INR 61 Lakh in FY21. 

Though the startup reported loss in FY22, revenue from operations jumped over 3X or 175% to INR 1,552.5 Cr from INR 564.7 Cr in FY21.

The second and third waves of Covid-19 infections in FY22 are likely to have helped the startup post the increase in operating revenue. The sales growth also got a boost as the startup partnered with more original equipment manufacturers (OEMs) and healthcare providers during the year. 

After raising $75 Mn in September 2021, Medikabazaar increased its presence to 55 cities in the country from 30 cities earlier. Besides, it also expanded to the Middle East and North Africa.  

The startup generated most of its revenue through sale of medical supplies in FY22. From medical devices to healthcare clothing requirements, Medikabazaar sells its products on its ecommerce platform. 

Including other income, Medikbazaar’s total revenue grew 164% to INR 1,600.8 Cr in FY22 from INR 606.9 Cr in FY21. 

As the startup expanded its reach and started procuring more medical supplies, its total capital expenditure rose 169% to INR 1,621.5 Cr from INR 603.9 Cr in FY21. Procurement of medical devices or purchase of stock-in-trade accounted for 85% of the expenses in FY22. The startup spent INR 1,385.5 Cr on procurement, a 179% increase from INR 496 Cr in FY21. 

Transportation was the second biggest cost for Medikabazaar, with the startup’s expense for it jumping 220% to INR 86 Cr from INR 26.9 Cr in FY21. 

Employee benefit expenses rose 106% to INR 75.8 Cr in FY22 from INR 36.7 Cr in FY21. This is a clear indication that the startup increased its headcount. Medikabazaar currently has over 500 employees. 

Meanwhile, discounting charges rose to INR 69 Cr from INR 23.3 Cr in FY21, while advertising expenses surged to INR 60.2 Cr in FY22 from INR 16.4 Cr in the previous year. EBITDA margin worsened to -0.6% from 0.9% in FY21.

Founded in 2015 by Vivek Tiwari and Ketan Malkan, Medikabazaar is a B2B online marketplace for medical equipment and supplies, largely focused on Tier-2, 3 and smaller cities. It claims to cover more than 1,000 towns and over 20,000 pin codes in India through its network. 

After raising $75 Mn in September 2021, the startup bagged $65 Mn from Lighthouse, Creaegis, Health Quad, Ackermans & van Haaren, British International Investment and KOIS Holdings in April 2022 at a valuation of over $700 Mn. 

While Tiwari,  in November 2021, claimed that the startup would cross the billion dollar valuation in next three or six months, the startup is yet to enter the unicorn club. 

Medikabazaar directly competes against Pharmeasy-backed Aknamed. Aknamed’s standalone net loss widened to INR 174.4 Cr in FY22, while its revenue from operations rose to INR 299.5 Cr. PharmEasy acquired Aknamed in September 2021 for over $140 Mn. PharmEasy, which filed draft papers for INR 6,250 Cr IPO in November 2021, has put its public offering on hold due to volatile market conditions.