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Bizongo, an ecommerce-focused packaging company, witnessed significant growth in its financial performance during FY23, with its revenue doubling to Rs 167 crore. However, Bizongo growth was accompanied by a substantial increase in losses, which nearly reached Rs 300 crore during the same period.
The Bizongo growth revenue from operations surged by 98.6% to Rs 166.86 crore in the fiscal year ending March 2023, compared to Rs 84 crore in FY22, as per its consolidated financial statements filed with the Registrar of Companies. Founded in 2015, Bizongo offers digital vendor management, supply chain automation, and supply chain financing services to its enterprise clients across various sectors such as fashion & lifestyle, pharmaceuticals, consumer discretionary, and consumer staples.
Bizongo’s revenue primarily comes from service fees, accounting for 96% of its total revenue, with the remainder derived from design income and platform fees. Additionally, the company generated around Rs 18.15 crore through interest and gains on financial assets, bringing its total revenue to Rs 185 crore by the end of FY23.
However, despite the revenue growth, Bizongo experienced a substantial increase in expenses, particularly in finance costs, which ballooned to Rs 151.95 crore, a 3.9X surge from the previous fiscal year.
The company’s employee benefit costs also rose by 79.4% to Rs 113.23 crore, inclusive of ESOP expenses worth Rs 27.12 crore. Furthermore, Bizongo booked an allowance for expected credit loss amounting to Rs 124 crore during the year. Consequently, its overall expenditure surged by 97.1% to Rs 476.6 crore in FY23. As a result of increased expenses and cash burn, Bizongo’s losses spiked by 173.1% to Rs 291.57 crore during FY23, compared to Rs 106.76 crore in FY22.
Despite the challenges, Bizongo managed to improve its operating cash outflows by 29.6% to Rs 646.3 crore during the last fiscal year. However, the company’s EBITDA margin and ROCE stood at -73.06% and -27.60%, respectively, indicating the need for further efficiency improvements. On a unit level, Bizongo spent Rs 2.86 to earn a rupee of operating revenue in FY23, highlighting the significant operational challenges faced by the company amidst its growth trajectory.
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