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WayCool posts Rs 927 revenue in FY22, losses widen 2.4X

WayCool claims to work with more than 150,000 farmers and 100,000 clients who source agricultural and dairy products from the company. The sale of these products contributed 99.8% of the collections and increased 143.5% to Rs 924.7 crore in FY22 from Rs 379.8 crore in FY21.<br>https://entrackr.com/2023/01/waycool-posts-rs-927-revenue-in-fy22-losses-widen-2-4x/<br>

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WayCool posts Rs 927 revenue in FY22, losses widen 2.4X

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  1. WayCool posts Rs 927 revenue in FY22,losseswiden 2.4X AgritechecosysteminIndiaisyettochurnaunicornbutthesegmentseemstohavegottenincreasedinvestorattentionin2022.AccordingtoFintrackr,around60startupsinthesegmentmoppedup$772millioninfundingduring2022,upfrom$540millionin2021.DeHaat,Ninjacart,andWayCoolwerethetopthreestartups,bothwithrespecttofundingandscaleduringthelastfiscalyear(FY22). WhileDeHaatandFlipkart-backedNinjacartemergedastoptwocompaniesinthesegmentwithRs1,274croreandRs967crorerevenueinFY22,WayCooltook the third position with Rs927 croreingrossrevenueduringthelastfiscal.

  2. WayCool’srevenuefromoperationsspiked2.4XtoRs927croreinFY22fromRs382croreinFY21,accordingtoitsconsolidatedannualfinancialstatementswiththeRegistrarofCompanies(RoC).WayCool’srevenuefromoperationsspiked2.4XtoRs927croreinFY22fromRs382croreinFY21,accordingtoitsconsolidatedannualfinancialstatementswiththeRegistrarofCompanies(RoC). WayCoolclaimstoworkwithmorethan150,000farmersand100,000clientswhosourceagriculturalanddairyproductsfromthecompany.Thesaleoftheseproductscontributed99.8%ofthecollectionsandincreased143.5%toRs924.7croreinFY22fromRs379.8croreinFY21. Franchisefeesandtechnicalsupportservicesgrewbyonly4.5%andcontributedRs2.3croretothecompany’scoffers.Besidesoperatingincome,italsomadeRs3.74croreinFY22throughfinancialinstruments. Ontheexpenseside,thecostofprocurementofmaterialsaccountedfor70.5%oftheoverallcostandsoared2.4XtoRs909croreinFY22.Employeebenefitcostsalsoshotupover2.2XtoRs147croreinFY22fromRs65croreinFY21. WayCoolranaggressivepromotionalandadvertisingcampaignsinFY22andrecentlyropedinactressSnehaPrasannaasitsambassador.Itscostonmarketingblew4.5XtoRs27croreinthefiscalyearendingMarch2022.

  3. WayCoolincurredRs20croreonlogisticsandtransportationwhichpusheditstotalcost2.4XtoRs1,289croreinFY22fromRs535croreinFY21.WayCoolincurredRs20croreonlogisticsandtransportationwhichpusheditstotalcost2.4XtoRs1,289croreinFY22fromRs535croreinFY21. Intheend,thecompanyachieveda2.4Xsurgeinitsscalebylosingmoneyatthesamepace.WayCool’slosseswidened2.4XandstoodatRs360croreinFY22.ItsROCEandEBITDAmarginswereregisteredat-83.05%and-36.41%.Onaunitlevel,WayCoolspentRs1.39toearnarupeeofoperatingrevenueinFY22. Whilethestrongtoplineperformanceofagritechfirmsisnosurprise,consideringthesheersizeofthesectorandthepossibilitiesfororganisingpartsofit,thisisnotasectorwherefirmscanjustifylosingmoneyafterapoint.Theagricultureeconomymightofferlowermargins,butreversinglossmakingorsubsidisedbusinesswithashiftto‘viable’marginscanbecomeverydifficultinthissegment.Whichiswheneventom-tommingyour‘impact’onthesectorwillbeoflittlehelp,asalmosteveryagritechneverfailstoremindstakeholders.Toomuchtalkof‘impact’seekstogivethebusinessaneedlesshue,whenwhatIndia’sagritechsneedtoshowisthatthesectoroffersrealandlongtermreturns.Thatiswhentheywilldothegreatestgoodforthesector.Whileinvestmentsintoinfrastructurelikeacoldchainarejustifiedandmuchneeded,spendingshootingupinareaslikemarketingisn’t.

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