OfBusiness became the 18th startup to reach the unicorn milestone earlier this year
profit has surged 72% during the fiscal ending March 2021.
The industrial goods and services procurement platform OfBusiness became the 18th company to surpass the unicorn milestone earlier this year after collecting $360 million in two months in successive rounds led by Softbank and Tiger Global.
This makes it one of just a few startups among the 39 that have become unicorns this year. While its operational revenue has more than doubled, profit has increased by 72 percent for the fiscal year ending March 2021.
The Delhi-based company just reported its financial reports for the previous fiscal year, and we sorted through the figures to learn how the company raised its earnings during the year. In FY21, OfBusiness’ operational revenue more than doubled to Rs 1,748 crore, rising from about Rs 850 crore in FY20. The sale of industrial goods and raw materials accounted for approximately 85.47 percent of total income. Its revenue increased 2.2X to Rs 1,494.1 crore in FY21 from Rs 665.6 crore in FY20.
OfBusiness also offers credit lines to buyers on its platform, and financial services account for 12.5 percent of its income. In FY21, such income increased by 33.7 percent to Rs 219.3 crore, up from Rs 164 crore in FY20. Contractual and other related operational revenue grew by 70.4 percent year on year to Rs 34.6 crore in FY21.
Even with supply chain delays and lockdowns during the fiscal year, OfBusiness was able to lower its average age of inventory by over 20%, from 127 days in FY20 to 102 days in FY21. Annual earnings increased by 72.4 percent to Rs 55.7 crore in FY21, up from Rs 32.3 crore in FY20.