Highlights
Captain Fresh Gears Up for IPO with Significant Funding
B2B seafood startup Captain Fresh is making strides towards its initial public offering (IPO) after securing Rs 100 crore from the Motilal Oswal Group. This investment appears to be part of its pre-IPO funding strategy. Notably, the Bengaluru-based company recorded impressive financial results in the past fiscal year, although it continues to face challenges in reducing its losses.
Financial Performance Overview
According to its consolidated financial statement from the Registrar of Companies (RoC), Captain Fresh reported a 71% increase in gross revenue (GMV), rising to Rs 1,395 crore in FY24 from Rs 817 crore in FY23.
Business Model and Operations
Captain Fresh operates as a business-to-business seafood marketplace, providing a farm-to-retail platform for various animal proteins, including fish, seafood, and sheep. The startup sources products directly from agents or farmers and distributes them through multiple channels—B2B, B2R, and B2B2C. They utilise:
- A bid engine
- Proprietary quality inspection
- Satellite technology to efficiently match demand with supply
Revenue Breakdown
The surge in revenue was primarily attributed to product sales, which generated Rs 1,385 crore, representing 99.28% of total operating revenue. Additionally:
- Other operating revenue contributed Rs 8.7 crore
- Sale of services added Rs 1.3 crore
The company also earned an extra Rs 27 crore in interest income, leading to a total revenue of Rs 1,422 crore in FY24.
Cost Analysis
On the expense side, the cost of materials was the largest expense, rising by 72.5% to Rs 1,311 crore, which accounted for 79.55% of total expenses. Other notable expenses included:
- Employee benefit expenses decreased significantly by 32.45% to Rs 81.6 crore
- Legal expenses increased by 30.56% to Rs 47 crore
- Transportation costs fell by 24% to Rs 38 crore
- Other expenses remained stable at Rs 170.4 crore
Overall, total costs rose by 44.82% to Rs 1,648 crore in FY24, compared to Rs 1,138 crore in FY23.
Losses and Key Metrics
Captain Fresh’s losses surged by 4.4 times to Rs 229 crore in FY24, up from Rs 52 crore in FY23. Key metrics include:
- Return on Capital Employed (ROCE): -22.95%
- EBITDA Margin: -12.10%
The company spent Rs 1.18 to generate every rupee of operating revenue in FY24.
Assets and Investors
The company reported total current assets of Rs 1,804 crore, which includes Rs 148 crore in cash and bank balances. To date, Captain Fresh has raised a cumulative funding of $176 million, backed by major investors like Matrix Partners, Tiger Global, Accel, Prosus, and Ankur Capital.
In the last fiscal year, the company expanded its operations by acquiring three companies: Senecrus (a Paris-based shrimp cooker and distributor), CenSea (based in the US), and Koral (from Poland). The new funding appears to be aimed at bolstering its pre-IPO preparations.
IPO Plans
According to media reports, Captain Fresh has engaged Axis Capital and BofA as financial advisors for a proposed IPO valued at approximately $350-400 million.