Falca’s Impressive Growth in Agritech Supply Chain

Falca, a full-stack agritech supply chain company, has shown remarkable growth in its gross merchandise value (GMV). Over the last five fiscal years, Falca experienced an extraordinary 65X increase in GMV, with gross revenue escalating to Rs 368 crore in FY25 from only Rs 5.6 crore in FY20.

Year-on-year, Falca’s GMV saw a 27% rise to Rs 368 crore in FY24, up from Rs 289 crore in FY23, as indicated by its consolidated financial statement sourced from the Registrar of Companies (RoC).

Key Offerings of Falca in the Agritech Supply Chain

Falca provides four main products that address various aspects of the agriculture supply chain. Suggi delivers agricultural inputs like seeds and pesticides through an extensive network of physical outlets. Samrat is a comprehensive solution offering advisory services, inputs, and market connections. Siri serves as a trading platform that links large-scale farmers, traders, and Farmer Producer Organisations (FPOs) with potential buyers. Lastly, Sampoorna features both mobile and web applications designed to enhance farm productivity and operational efficiency.

In the previous fiscal year, the sales of these products and services constituted the exclusive source of revenue for Falca.

Financial Highlights

In contrast to its year-on-year revenue growth, Falca’s total expenses surged by 30.2% to Rs 384 crore in FY24. The largest expense category, material costs, accounted for 94% of total expenses. Corresponding to the company’s growth, material costs rose by 27%, reaching Rs 362 crore in FY24, up from Rs 284 crore in FY23.

The costs associated with employee benefits doubled to Rs 10 crore, while finance expenses experienced a 50% increase to Rs 3 crore. Additionally, other expenses amounted to another Rs 9 crore for the fiscal year ending March 2024.

As a result, Falca’s net loss expanded threefold to Rs 15 crore in FY24, in contrast to a Rs 5 crore loss recorded in FY23. The company’s EBITDA margin also deteriorated from -1% in FY23 to -3.14% in FY24, indicating that Falca spent Rs 1.04 to earn a single rupee in FY24.

Cash Flow and Investment

Falca’s cash and bank balances plummeted by 50% to Rs 4 crore, and current assets saw a significant drop from Rs 53.5 crore to Rs 24.5 crore. As per various sources from startup data intelligence platforms, Falca has secured approximately $3 million in funding to date, with Kingston Smiler and Inflection Point Ventures serving as its lead investors.