Moglix, the B2B e-commerce platform, has reported a modest revenue increase of 5.5% for the fiscal year ending March 2024, following a remarkable 82.6% growth in FY23. This slower growth trajectory comes despite the company successfully reducing its losses by 16% during the same period.
The consolidated financial statements reveal that Moglix’s operational revenue reached Rs 4,964 crore ($591 million) in FY24, compared to Rs 4,704 crore ($560 million) in FY23, as disclosed by its Singapore-based group company.
A significant portion of Moglix’s revenue—98.98%—originated from the sale of traded goods, which grew by 5.4% to Rs 4,914 crore in FY24. The remaining revenue stems from commissions on online sales, IT services, factoring, and related offerings.
Adding interest income and other non-operating earnings, Moglix’s total revenue climbed to Rs 5,309 crore ($632 million) in FY24. The Indian market was the primary contributor, accounting for 97.1% of total revenue, while the USA and Singapore contributed 2.7% and 0.16%, respectively.
Operating on a cash-and-carry model, Moglix incurred procurement costs that made up 84% of its total expenses. These costs rose by 4.4% to Rs 4,620 crore in FY24, up from Rs 4,427 crore in FY23 due to increased scale.
Employee benefits expenditures reached Rs 218 crore, and shipping costs were Rs 92 crore in FY24. The total expenses, which include spending on advertising, legal fees, IT, provisions for doubtful debts, and other operational costs, amounted to Rs 5,493 crore ($654 million) in FY24, compared to Rs 5,208 crore ($620 million) in the previous year.
Despite experiencing stagnant growth, effective cost management and a rise in other income enabled Moglix to cut its losses to Rs 189 crore ($22.5 million) in FY24, down from Rs 225 crore ($26.8 million) in FY23. The company reported a Return on Capital Employed (ROCE) and EBITDA margin of -4.82% and -1.5%, respectively, with a unit-level expenditure of Rs 1.11 to generate a single rupee in FY24.
To date, Moglix has raised a total of $440 million through various funding rounds. According to TheKredible, Tiger Global is the largest external shareholder with a 14.75% stake, followed closely by Accel and Alpha Wave, holding 14.26% and 13.35%, respectively. Co-founder and CEO Rahul Garg maintains a 12.67% ownership in the company.
The slowdown in growth could signal challenges for Moglix, appearing earlier than anticipated in its growth trajectory. However, sharp declines in growth rates are not uncommon for companies that have previously experienced rapid expansion like Moglix. Such fast growth often introduces challenges—whether related to human resources, liquidity, or other operational aspects. Investors will be closely monitoring the situation to understand the underlying factors contributing to this shift.