Eggoz: Financial Performance and Future Directions

Eggoz has gained attention recently due to a controversy, yet the branded egg producer demonstrated a solid financial performance in FY25, achieving significant revenue growth alongside a slight reduction in losses. Eggoz’s operational revenue soared by 78% year-on-year, reaching Rs 130 crore in FY25 compared to Rs 73 crore in FY24, based on standalone financial statements retrieved from the Registrar of Companies.

About Eggoz

Established in 2017 in Bihar by Abhishek Negi, Aditya Singh, and Uttam Kumar, Eggoz employs an asset-light, farmer-led supply chain model, ensuring that fresh eggs are delivered to retailers within a 24-hour timeframe. The company has progressively expanded its presence into vital markets such as Delhi-NCR, Bengaluru, Kolkata, Jaipur, and Lucknow.

Revenue and Product Expansion

The sale of eggs constituted the sole source of Eggoz’s operational revenue in FY25. However, the company has recently branched out from shell eggs into the ready-to-cook market, introducing products such as momos, burger patties, and nuggets.

Expenditures and Cost Management

On the expenditure front, egg procurement remained the largest cost factor, accounting for nearly 67% of total costs. The procurement expenses rose to Rs 103 crore in FY25, aligning closely with the company’s revenue growth. Employee benefit costs escalated to Rs 20 crore during the year, which included Rs 3 crore for ESOP-related expenses. Freight, advertising, rent, and other operational costs saw Eggoz’s total expenditure rise to Rs 154 crore in FY25, compared to Rs 100 crore in the previous fiscal year.

Operational Efficiency

Despite the increasing operational costs, enhanced scale enabled Eggoz to diminish its net losses by 8%, reducing them to Rs 23 crore in FY25 from Rs 25 crore in FY24. The company also reported enhancements in EBITDA, return on capital employed (ROCE), and the expense-to-revenue ratio throughout the year.

Funding and Growth Potential

Eggoz has successfully secured over $32 million in funding thus far, including a prominent $20 million investment round led by Gaja Capital. Earlier rounds comprised $8.8 million in Series B financing led by IvyCap Ventures, $3.5 million in Series A funding, and Rs 3.7 crore during its seed phase.

Challenges Ahead

While narrowing the gap between expenses and revenue might signal a path to potential profitability in FY26, the recent controversy regarding allegedly ‘carcinogenic’ eggs could have affected the brand’s reputation. This situation not only impacts sales but may also lead to additional costs incurred to combat negative narratives against the business. This incident underscores the delicate nature of reputation in today’s market and highlights the necessity for companies to implement effective strategies for reputation management and crisis response.

Future Outlook

In a nation grappling with protein deficiencies, startups like Eggoz play a crucial role in incentivising smaller poultry farmers to remain engaged and prevent the market from leaning solely toward large industrial layer farms. India’s diverse and rich environment makes it imperative to explore alternative models rather than adopting the widespread industrialisation approach that has increasingly characterised poultry farming.