Ripplr: Distribution and Supply Chain Growth in FY25

Ripplr, the distribution and supply chain platform, experienced a remarkable almost threefold GMV upsurge in FY24. However, the pace of its growth reduced considerably, as it barely secured double-digit growth in the recent fiscal year. Ripplr’s gross revenue saw an increase of 13% to Rs 1,164 crore in FY25, up from Rs 1,028 crore in FY24, as detailed in its annual financial report.

Understanding Ripplr’s Business Model

For those unfamiliar, Ripplr provides a plug-and-play distribution network as a service, aimed at digitising and managing brand operations. Notably, sales from goods represented 92% of Ripplr’s total gross revenue, rising by 14% year-on-year to Rs 1,068 crore in FY25. Additionally, revenue from logistics and warehousing played a significant role in the growth of this 3One4 Capital-supported firm.

Cost Analysis and Expenditure

The cost of materials was the largest expense for the company, representing nearly 81% of total costs and increasing by 14.5% to Rs 1,018 crore in FY25, compared to Rs 889 crore in FY24. Conversely, employee benefit expenses saw a sharp decline of 33%, falling to Rs 40 crore in FY25 from Rs 60 crore in FY24. Other financial elements included depreciation, finance costs, and professional fees, which collectively accounted for an additional Rs 32.5 crore. Meanwhile, other expenses related to logistics, store operations, and miscellaneous overheads rose by 14.5% to Rs 169.5 crore. In total, Ripplr’s expenses grew by 12%, reaching Rs 1,260 crore in FY25. For a complete breakdown of expenses, it is advisable to consult various financial resources.

Financial Performance Overview

In FY25, Ripplr reported a loss of Rs 91 crore, closely mirroring the Rs 90 crore loss in FY24. The firm’s return on capital employed (ROCE) and EBITDA margin witnessed slight improvements, landing at -30% and -5.88% respectively. On a unit basis, Ripplr expended Rs 1.08 to generate one rupee of operating revenue in FY25, a minor improvement compared to Rs 1.10 in the previous fiscal year. The Bengaluru-based company maintained cash and bank reserves of Rs 63 crore, while current assets surged to Rs 381 crore in FY25.

Future Funding Plans

Ripplr is reportedly in talks to secure Rs 400 crore from the State Bank of India (SBI) and existing investors. Prior to this, the company had successfully raised over $45 million. According to startup data intelligence platforms, notable investors include Sojitz Corporation and 3One4 Capital.