Unnati Agri, a fintech-driven agritech platform, has achieved a significant milestone by surpassing ₹500 crore in revenue for the fiscal year ending March 2024. This marks a 30% increase from the ₹397 crore reported in FY23. Despite this growth, the company’s losses widened marginally by 14% year-on-year, reaching ₹16 crore in FY24. (economictimes.indiatimes.com)
Revenue Growth and Financial Performance
Unnati Agri’s revenue from operations rose to ₹515 crore in FY24, up from ₹397 crore in FY23. The company’s total expenses increased by 29% to ₹533 crore, with material costs accounting for 88% of total expenses. These costs rose 27% to ₹469 crore in FY24 from ₹370 crore in FY23. Discount charges, tied to incentives and promotions, more than doubled to ₹31 crore from ₹15 crore. Employee benefits increased to ₹15 crore, and other expenses rose to ₹18 crore. (economictimes.indiatimes.com)
Despite the top-line growth, the company’s losses slightly widened to ₹16 crore in FY24 from ₹14 crore in FY23. Its Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at -17.19% and -2.03%, respectively. On a unit basis, the company spent ₹1.03 to earn a rupee of operating revenue in FY24. (economictimes.indiatimes.com)
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Strategic Partnerships and Product Expansion
In June 2023, Unnati Agri raised ₹28.5 crore, led by the family office of IPL Biologicals. This funding aims to expand its product line through a joint go-to-market arrangement with IPL Biologicals, focusing on climate-ready products. IPL Biologicals offers a range of patented microbial and biological nutrition, biocontrol, and soil and plant stimulants. (economictimes.indiatimes.com)
The introduction of Unnati’s exclusive branded product line, including seeds, fertilizers, and crop protection solutions, has experienced an 8-9x year-on-year growth. This expansion, now extended across multiple states, signifies its utility among farmers and trust in the Unnati brand. (economictimes.indiatimes.com)
Operational Milestones
In October 2023, Unnati Agri achieved break-even status, registering a 2x growth compared to the previous fiscal year. The company’s financial performance was EBITDA positive, with 1.1% margins. The total transactional value conducted on Unnati’s platform is on a trajectory to surpass ₹700 crore this year, marking a 70% growth from the previous fiscal year. The company has sustained a Compound Annual Growth Rate (CAGR) of over 90% in the last three years. (economictimes.indiatimes.com)
Future Outlook
Unnati Agri’s co-founders, Amit Sinha and Ashok Prasad, together own 44.6% of the company. The company has raised approximately $14 million in funding to date, with NABVENTURES and VSS Investco as its lead investors. (economictimes.indiatimes.com)
The company’s total assets rose to ₹144 crore in FY24, with current assets reaching ₹141 crore. As of March 2024, the firm held ₹34 crore in cash and bank balances, offering a liquidity buffer. (economictimes.indiatimes.com)
Unnati Agri’s consistent growth and strategic initiatives position it as a significant player in the agritech sector, aiming to empower farmers and enhance the agricultural value chain through technology and financial services.
