B2B Agritech Bijak’s GMV Skyrockets 13X to Rs 807 Cr in FY23, Amid Profit Management

Bijak is a company that focuses on empowering various nodes within the agricultural supply chain. They have different business arms such as Bijak Vyapaar, which works on transforming grain trading with innovative market solutions, Bijak Mandi that connects fresh produce suppliers with major markets, Bijak Global which bridges Indian agriculture with global markets, and Just Fresh which offers premium fruits and vegetables to quality-conscious consumers. Bijak has started in 2019 and has achieved significant milestones in its journey, along with launching various initiatives like Just Fresh and Bijak Vyapaar. They also have a blog featuring articles on topics such as protein-rich fruits and vegetables, health benefits of muskmelon, challenges faced by red chili farmers, and high-yielding maize varieties for the Kharif season.

Related: Agritech Startup BigHaat Initiates Series C Funding Round

In the financial year ending March 2023, the revenue of Agritech startup Bijak skyrocketed, leaping 13 times higher compared to FY22. Not only that, but the Gurugram-based company also managed to slash its losses by more than 16% during the same period.

Bijak’s gross revenue, also known as gross merchandise value (GMV), surged an astonishing 13 times to Rs 807 crore in FY23 from Rs 62 crore in FY22. Established in 2019, Bijak serves as a B2B marketplace for trading agricultural commodities, offering a range of services including logistics and working capital support to suppliers.

In the fiscal year 2023, the company generated 99% of its revenue from selling agricultural products through its apps, including Bijak Mandi, Vyapaar, Global, and Just Fresh. Apart from this, income from commission, logistics, and interest played significant roles in boosting revenue for Bijak. Additionally, the company earned Rs 6 crore from interest on deposits and current investments, bringing its total income to Rs 813 crore in FY23.

For the B2B supplier dealing in everyday goods, the spending on buying agricultural products made up a whopping 92% of their total expenses. Put simply, this expense rocketed up by 12.4 times to reach Rs 791 crore in the financial year 2023.

Adding to this were costs like employee benefits, advertising, dealing with uncertain debts, fees for online payment services, handling logistics, paying brokerage fees, and various other overheads. All of these combined led to the company’s overall spending reaching Rs 860 crore in the fiscal year 2023, up from just Rs 121 crore in the previous year.

Bijak made significant strides in managing its losses by 16.4% to Rs 46 crore in FY23, down from Rs 55 crore in FY22, thanks to its smart handling of employee benefits and advertising. This improvement not only reflects better financial management but also highlights the company’s dedication to maximizing its resources effectively.

Furthermore, Bijak’s Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins saw positive growth. Despite challenges, the company’s efforts resulted in a noteworthy enhancement in its financial performance.

At the operational level, Bijak’s expenditure of Rs 1.07 to earn a rupee in FY23 underscores its commitment to prudent spending and efficient resource allocation. This demonstrates Bijak’s strategic approach towards achieving sustainable growth and profitability.

Bijak has secured approximately $33 million so far, which includes a significant $19.4 million boost from its Series B round spearheaded by Peak W and Omidyar Network back in January 2022. According to insights from TheKredible, a platform tracking startup data, Peak W’s Surge Ventures holds the top spot as the primary investor with a 13.8% stake. Following closely behind are Bertelsmann and Omidyar Network, also with notable investments in the company.

Bijak experienced an extraordinary financial upturn in FY23, marking a 13-fold increase in gross revenue, reaching Rs 807 crore from Rs 62 crore in FY22. The company strategically diversified its revenue streams through agricultural product sales, apps, commission, logistics, and interest income. Although expenses surged, effective cost management and a 16.4% reduction in losses to Rs 46 crore showcased Bijak’s commitment to financial prudence. With a substantial funding of about $33 million, including vital support from investors like Peak W, Omidyar Network, and Bertelsmann, Bijak’s financial performance signifies its strong growth trajectory.