Prozo Achieves Impressive Growth in Fiscal Year 2024

Prozo, a full-stack supply chain company, has announced a remarkable 30% year-on-year revenue increase for the fiscal year ending March 2024. Operating out of Gurugram, the firm has also managed a significant reduction of 26% in its losses during this timeframe, primarily by cutting material costs by half.

Revenue from operations climbed to Rs 166 crore in FY24, up from Rs 128 crore in FY23, as indicated by its financial statements acquired from the RoC.

Fast Fulfillment Through Technology

Prozo’s business model centres around enabling rapid order fulfillment for clients, leveraging its extensive warehousing and freight network across India, which is supported by a comprehensive supply chain technology stack and control tower.

Service Revenue Surge

The company earns income from both service and product sales. There was a substantial 181.4% increase in revenue from services, reaching Rs 121 crore in FY24, establishing it as the key revenue contributor. Conversely, revenue from product sales saw a decline of 47%, totalling Rs 45 crore in FY24.

Expense Management Overview

On the cost front, Prozo effectively halved its material costs, which dropped to Rs 37 crore. However, the company experienced a substantial rise in transportation expenses, which surged by 209.1% to Rs 34 crore, along with a 12.9% increase in employee benefit expenses to Rs 35 crore. Other operating costs, which include technology and operational expenditures, added Rs 81.5 crore. Overall, Prozo’s total expenses increased by 22% to Rs 187.5 crore in FY24 from Rs 154 crore the previous fiscal year.

Despite the increase in expenses, Prozo’s revenue growth allowed the firm to reduce its losses by 26%, bringing it down to Rs 20 crore in FY24 from Rs 27 crore in FY23. The company’s ROCE and EBITDA margins improved to -19% and -7.44%, respectively, demonstrating better financial efficiency. On a unit basis, Prozo incurred an expense of Rs 1.13 for every rupee earned in FY24.

Current Assets and Investments

Prozo holds current assets valued at Rs 107 crore, which includes Rs 31 crore in cash and bank balances for FY24. The company has successfully raised a cumulative total of $18.4 million in funding to date, attracting notable investors such as Sixth Sense Ventures, Auctus Capital, and Earlsfield Capital. The firm’s founder and CEO, Ashvini Jakhar, retains a 21% stake in the company.