B2B Medical Supply Chain Platform Medikabazaar Reports Revenue Surge
B2B medical supply chain platform Medikabazaar has announced a significant 50% increase in gross revenue from operations for the fiscal year ending March 2024, recovering from a 41% decrease in FY23. Despite the revenue growth, the company experienced a widening of losses by 30%, amounting to Rs 394.8 crore during the same period.
According to consolidated financial statements filed with the Registrar of Companies, Medikabazaar’s operating gross revenue climbed to Rs 1,355.6 crore in FY24, up from Rs 908.5 crore in the previous fiscal year.
Understanding Medikabazaar’s Business Model
Medikabazaar serves as a B2B medical supply chain platform that allows hospitals to discover and compare medical supplies in real time, including specifications and prices. The platform offers a wide range of products such as hospital equipment, diagnostic tools, consumables, and dental instruments. In FY24, an impressive 98% of the company’s revenue, reaching Rs 1,328.6 crore, originated from product sales.
Additionally, the Mumbai-based firm garnered Rs 51.3 crore from interest on fixed deposits, non-current investments, and bonds, leading to a total revenue of Rs 1,407 crore for the fiscal year ending March 2024.
Cost Analysis and Financial Overview
The procurement of supplies and equipment represented the largest expense, making up 79% of total costs for the company. This cost increased by 43%, reaching Rs 1,279 crore in FY24. Employee benefit expenses also rose by nearly 40% year-on-year, totalling Rs 140 crore.
Moreover, the company recorded a non-cash expense of Rs 66.5 crore concerning doubtful debts and advances, likely indicative of delayed or potentially unrecoverable payments for supplies sold on credit. Other factors such as advertisement, legal and professional fees, transportation, travel costs, and various overheads led to the total expenditure rising to Rs 1,621 crore in FY24, reflecting a 44% hike from Rs 1,126.5 crore in FY23.
Understanding the Financial Performance
As expenses and total revenue increased at similar rates, the overall losses escalated by 30%, growing to Rs 394.5 crore from Rs 303.4 crore. This figure includes exceptional items worth Rs 178.65 crore, covering allowances for doubtful debts and advances, inventory provisions, write-offs of balances, and miscellaneous expenses of Rs 88.6 crore.
On a unit level, Medikabazaar spent Rs 1.2 to generate a rupee of operating revenue. By the end of FY24, the company’s total current assets amounted to Rs 1,176.56 crore, which included cash and bank balances of Rs 62.76 crore.
Investment and Leadership Changes
According to various sources from a startup data intelligence platform, Medikabazaar successfully raised over $160 million through multiple funding rounds, including a $65 million Series D round in April 2022, which valued the company at $700 million.
In a notable leadership change, Medikabazaar dismissed former CEO Vivek Tiwari in April over allegations of malicious and fraudulent activities. Since August of the previous year, Dinesh Kumar Lodha has been appointed as the Group CEO of the company.