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EasyEcom: Scaling Revenue Heights with Surging Losses - A Tale of Growth and Investment

EasyEcom, a company offering SaaS-based solutions for ecommerce enablement, has seen significant growth in its revenue during the fiscal year ending March 2023. Despite this positive trajectory, the company also experienced a substantial increase in losses over the same period.


Founded in 2015 by Punit Gupta, Jitesh Advani, and Swati Jindal, EasyEcom provides a suite of services including inventory and warehouse management, along with modules for automating back-office functions such as shipping-related payments reconciliation and return reconciliation.

In FY23, the company's revenue from operations reached Rs 6.71 crore, marking a notable increase from Rs 4.08 crore in FY22. However, this growth was accompanied by a significant rise in expenses. Employee benefits, constituting 67.5% of total expenses, saw a threefold increase to Rs 8.5 crore during the last fiscal year, inclusive of an ESOP cost of Rs 78 lakh.


IT costs, including server hosting and technical consultancy charges, surged to Rs 1.59 crore in FY23 from Rs 67 lakh in FY22. Additionally, the company incurred various other expenses such as professional fees, subscription charges, business promotion costs, and administrative and operating expenses, contributing to an overall cost increase of 188.3% to Rs 12.6 crore in FY23.


Consequently, EasyEcom's losses escalated significantly, reaching Rs 4.4 crore in FY23 compared to Rs 24 lakh in FY22. On a unit level, the company spent Rs 1.88 to earn a rupee of operating revenue during the fiscal year.


EasyEcom gained attention in January 2022 when IndiaMart acquired a 26% stake in the company for $2 million as part of a Series A round. Prior to this, the startup had secured angel funding in December 2017 from tech industry executives and early-stage investment funds. In October 2019, it raised additional funding from the early-stage fund Amistad Venture.


Despite the challenges posed by increased losses, EasyEcom's continued growth and strategic investments signal confidence in its potential to further establish itself in the competitive ecommerce enablement market.



 

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