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Bijnis Booms: Records 100% Growth Amidst Rising Losses in B2B Retail Marketplace

Bijnis, a B2B marketplace focusing on unorganized retail, has achieved significant growth, with a 100% year-on-year increase in revenue for the fiscal year ending March 2023. Despite this, the Delhi-based company also experienced a nearly 75% rise in losses, reaching approximately Rs 100 crore during the same period.

The company's revenue from operations soared to Rs 52 crore in FY23 from Rs 26 crore in FY22, as per its annual financial filings with the Registrar of Companies.

Bijnis serves as a platform connecting manufacturers, suppliers, traders, and retailers, facilitating business expansion for all parties involved.

The majority of Bijnis' operating revenue, 90%, comes from commissions charged on sales made through its platform, which grew 2.1 times to Rs 47 crore in FY23. Additionally, revenue is generated from freight services and the sale of goods.

The company's total income for FY23 amounted to Rs 65 crore, including Rs 13 crore from interest and investment gains, bolstered by backing from Peak XV.

Employee benefits accounted for 50% of the company's overall expenditure, growing by 82.2% to Rs 82 crore in FY23. Similarly, freight costs surged by 60% as the company scaled up its operations.

Overall expenditure increased by 84.3% to Rs 164 crore in FY23, driven by rising costs in procurement, advertising, travel, information technology, legal services, and other overheads.

Despite revenue growth, the substantial increase in costs led to a 74.6% rise in losses, totaling Rs 100 crore in FY23 compared to Rs 57 crore in FY22. Bijnis reported a Return on Capital Employed (ROCE) of -70% and an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of -150%. On a unit level, it spent Rs 3.15 to earn a rupee in FY23.

Bijnis has raised approximately $42 million through various funding rounds, with its largest round of $30 million led by Westbridge Capital in September 2021. Info Edge is the largest external stakeholder, holding 26.3% of the company, followed by Matrix Partners and Peak XV Partners, each with 14.21%.

Bijnis' specialization in a single B2B segment, particularly in footwear, is uncommon. This focus may indicate a strategic move to capitalize on accessible opportunities or to leverage this segment to expand further. Similar successful models, like Zetwerk, suggest that Bijnis might be aiming for broader but more challenging opportunities within smaller factories. Success in this area will likely require sustained support from existing investors, making their actions in the upcoming quarters crucial to watch.


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