Arya.ag, an agritech startup in the grain commerce sector, has reported a significant surge in revenue from Rs 194 crore in FY22 to Rs 290 crore in FY23, representing a 50% increase in scale for the company.
What contributed most to the revenue growth?
A major portion of Arya.ag’s revenue comes from its storage and warehousing services, contributing to 68% of the total revenue. In FY23, This segment alone generated Rs 198 crore, up 22.2% from FY22, Entrackr reported.
The remaining revenue was accrued from procurement service agreements and interest on loans from both Arya.ag and other Non-Banking Financial Companies (NBFCs).
What about expenses?
In terms of expenses, Arya.ag focused heavily on storage-related costs, which accounted for 62% of its total expenditure. The costs rose to Rs 178 crore in FY23, a 27.1% increase from the previous year.
Employee benefit expenses also significantly increased by 53.6%, amounting to Rs 43 crore. The overall expenses, including IT, legal, professional fees, finance costs, and other overheads, escalated by 43.9% to Rs 285 crore.
Is it profitable?
Unlike other startups, Arya.ag has witnessed a significant turnaround in it financials. The startup posted a profit of Rs 7.5 crore after tax in FY23, a stark improvement from a loss of Rs 10 lakh in FY22.
The shift to profitability is attributed to effective cost control and an increase in operational scale. Key financial metrics such as Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) improved to 10% and 19%, respectively.
Founded by Rao, Chattanathan Devarajan and Anand Chandra, Arya is an integrated grain commerce platform that focuses on offering post-harvest services.
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