The agritech sector continues to grapple with challenges, with profitability and scalability remaining elusive for many startups. Gurugram-based Gramophone, backed by Info Edge, saw its gross merchandise value (GMV) shrink dramatically by 70% in FY24, dropping to ₹98 crore from ₹316 crore in FY23, as per its consolidated financial statements filed with the Registrar of Companies (RoC).
Established in 2016 by Nishant Mahatre and Tauseef Khan, Gramophone provides a range of agritech solutions, including crop protection, nutrition, seeds, equipment, and agri hardware. It also connects farmers with buyers through its “Gram Vyapaar” platform. The company claims to serve over 2 million farmers and retailers across 50,000 villages.
Declining Revenue and Controlled Costs
The primary revenue source for Gramophone during FY24 remained the sale of agricultural inputs. However, the cost of procuring these inputs, which constituted 68% of its total expenditure, fell significantly in line with its reduced scale—declining by 70% to ₹90 crore from ₹304 crore in FY23.
Despite the drop in revenue, Gramophone managed to reduce its overall expenses, which included employee benefits, advertising, packaging, and other operational costs. Total costs dropped 64% to ₹133 crore in FY24, compared to ₹374 crore in FY23. This cost optimization helped the company narrow its losses by 41%, reducing them to ₹34 crore from ₹58 crore in the previous fiscal.
Financial Health and Future Prospects
The company’s profitability metrics, however, worsened, with its ROCE and EBITDA margins slipping to -246% and -31%, respectively. On a per-unit basis, Gramophone spent ₹1.36 to earn a rupee in FY24. Its total current assets stood at ₹20 crore, including ₹5.5 crore in cash and bank balances.
To date, Gramophone has raised over $20 million, including a $10 million Series B round led by Z3 Partners. Info Edge holds a significant 32.89% stake in the company, followed by Z3 Partners and Siana Capital.
As agritech startups navigate an uncertain landscape, Gramophone’s performance highlights the sector’s ongoing struggle to balance growth and sustainability.