Metalbook Reports Substantial Growth but Increased Losses in FY24

Metalbook, a comprehensive metal supply-chain platform, announced nearly 800 crores in gross revenue for the financial year ending March 2024. However, the company’s losses more than doubled during the same timeframe.

According to a financial statement obtained from the Registrar of Companies (RoC), Metalbook’s gross merchandise value (GMV) experienced a remarkable increase of 76%, rising to Rs 796 crore in FY24 from Rs 452 crore in FY23.

About Metalbook

Founded in 2021, Metalbook serves as a full-stack procurement platform that assists businesses, especially SMEs, with various needs such as inventory liquidation, logistics, and credit solutions. The platform claims to partner with over 500 manufacturers, dealers, and suppliers, including renowned names like ArcelorMittal Nippon Steel, Tata Steel, and JSW, spanning 16 countries. In FY24, these services constituted the sole revenue stream for the Gurugram-based company.

The firm also generated an additional Rs 2.5 crore from interest on investments and deposits, bringing its total income to Rs 799 crore in FY24.

Financial Overview

For Metalbook, the procurement cost of materials represented the most significant expense, comprising 96% of total expenditure. This cost surged by 75.34%, reaching Rs 782 crore in FY24.

Employee benefit expenses saw a notable increase of 90.48%, amounting to Rs 16 crore. Provisions for bad debts totalled Rs 3.7 crore, while other expenditures—covering legal, technology, and travel—added up to Rs 14.3 crore. Such elements contributed to an overall spike in total expenses by 77.78%, resulting in Rs 816 crore in FY24.

Losses and Financial Metrics

Even with a 76% upswing in revenue, Metalbook’s losses escalated by 2.8 times, reaching Rs 17 crore in FY24 compared to Rs 6 crore in FY23. The company reported a return on capital employed (ROCE) and an EBITDA margin of -9.65% and -1.27%, respectively. On a per-unit basis, it cost the company Rs 1.03 to generate a single rupee of gross revenue in FY24. The Delhi-based firm held current assets amounting to Rs 193 crore, which included Rs 61 crore in cash and bank balances from the prior fiscal year.

Funding and Investors

Metalbook has reportedly secured a total of $23 million in funding to date. Prominent investors include Axilor, Foundamental, and RTP Global, who hold 13.55%, 8.23%, and 5.81% of the company, respectively.