B2B marketplace Jumbotail has reported significant losses amounting to Rs 264 crore for the fiscal year ending March 2023, nearly doubling its previous year’s losses of Rs 124.7 crore. Despite this, the company witnessed a substantial growth in revenue from operations, reaching Rs 819 crore, marking a 117% increase from the previous fiscal year’s figure of Rs 377 crore. However, total expenses for Jumbotail in FY23 widened to Rs 1,114 crore from Rs 524 crore, with the purchase of stock-in-trade emerging as the largest expense at Rs 761 crore, up from Rs 352 crore.
Founded in 2015 by Karthik Venkateswaran and Ashish Jhina, Jumbotail operates as a wholesale and food grocery platform, offering comprehensive services for kirana stores, including storefront delivery and payment collection for its sellers. Despite the increased losses, Jumbotail remains focused on its expansion and service enhancement.
In March of the current year, the company successfully raised Rs 75 crore in venture debt from Alteria Capital and Innoven Capital. Jumbotail stated that the funds would be utilized to bolster hiring across various verticals, including deep sourcing, category management, product management, AI/ML, and marketing.
To date, Jumbotail has secured $125 million in equity funding from various funds such as Heron Rock Fund, Kalaari Capital, and Nexus Venture Partners. The company, founded by former Indian army veteran S Karthik Venkateswaran and his Stanford classmate Ashish Jhina, asserts that it holds a 60% market penetration within the addressable market of kirana stores in 50 cities. Remarkably, all of Jumbotail’s sales are reported to be placed organically by kirana stores, emphasizing the company’s integration within the local retail landscape.
