Jumbotail, the Bengaluru-based B2B food and ecommerce marketplace, witnessed a significant setback in the fiscal year ending March 31, 2023, with its net loss surging by 112% to INR 264.16 Cr. This financial challenge unfolded despite the startup doubling its sales, indicating the complexities in maintaining profitability within the competitive market.
The startup, founded in 2015 by S Karthik Venkateswaran and Ashish Jhina, primarily targets wholesale buyers through its online B2B marketplace. Despite the financial headwinds, Jumbotail remains determined to expand its reach, aiming for a retailer base of about 4 lakh and over 80% penetration in the addressable market in FY24.
How Jumbotail Fared in FY23: Revenue Sources and Expenditures
Jumbotail’s total revenue from operations showed robust growth, surging by 117% to INR 819 Cr from INR 377.36 Cr in FY22. The startup earns revenue from product sales, services via its omnichannel retail brand J24, and service income from its Golden Eye retail operating system.
In terms of expenditures, Jumbotail’s total expenses escalated by 113% to INR 1,114.04 Cr in FY23. Key expense areas included a nearly doubled expenditure on the purchase of stock-in-trade, increased employee benefits expenses, rising distribution costs, and an uptick in advertising and promotional expenditures.
Challenges and Growth Aspirations
Despite the fiscal challenges, Jumbotail remains optimistic about its growth prospects. The startup plans to double its operating revenue, increase the number of J24 stores to 300, and expand its retailer base in FY24. Currently, Jumbotail claims to have 2.5 lakh+ retailers across 50+ cities.
The startup faces competition from industry players like Udaan and BigBasket. Jumbotail has raised around $139 million in equity and debt from investors, including Kalaari Capital, Invus, Heron Rock, VII Ventures, Nexus Ventures, Arkam Ventures, Alteria Capital, and Innoven Capital.
