PC: Linqto
Moglix, the B2B digital e-commerce platform, reported a modest revenue growth of 5.5 percent in FY24, down from a strong FY23 at 82.6 percent. Even though that slowdown has taken place, the company has reduced losses to 16 percent.
According to the consolidated financial statements accessed from its group company in Singapore, Moglix’s revenue from operations rose to ₹4,964 crore or about $591 million in FY24, a 5.4 per cent increase from ₹4,704 crore, or $560 million, in the previous fiscal year. The sale of traded goods formed a whopping 98.98% of Moglix’s operating revenue, which grew by 5.4% to ₹4,914 crore. The rest came from commissions on online sales, IT services, factoring, and other allied services.
Revenue Breakdown and Market Contribution
Total revenue, including interest income and other non-operating earnings, of ₹5,309 crore, or $632 million, was marked for FY24. The Indian market continued to be the principal source of revenue for the company at 97.1%, followed by 2.7% from the United States and a minuscule 0.16% from Singapore. Such absolute dependence on the Indian market speaks to the importance of having country-specific growth strategies that Moglix has to take up in order to transcend the challenges of a shallow international footprint.
Moglix follows a cash-and-carry model and the procurement cost was at 84% of its total expenditure. That touched 4.4% higher levels in FY24 at ₹4,620 crore from ₹4,427 crore it had incurred in FY23. It reflects how the company scaled its operations but raises questions on margin pressures.
Expenditure and Cost Management
In FY24, Moglix incurred a total of ₹5,493 crore ($654 million), up from ₹5,208 crore ($620 million) in FY23. The company paid ₹218 crore towards employee benefits and ₹92 crore for shipping. Others include advertising, legal services, IT, allowances for doubtful debts, and overheads.
Although its revenues were flat, disciplined cost management and a spurt in other income were sufficient for decreases in losses for Moglix. Its losses stood at ₹189 crore ($22.5 million) in FY24 compared to ₹225 crore ($26.8 million) in FY23. That kind of resilience and strategic focus on improving operational efficiencies even in that not-so-easy environment is visible in the outcome.
Financial Metrics and Stakeholder Insights
Moglix’s Return on Capital Employed and EBITDA margin stood at (-4.82%) and (-1.5%), respectively, which signifies that the company is still facing difficulties in terms of achieving profitability. At a unit level, the company incurred ₹1.11 to generate one rupee in FY24, which depicts the cost pressures it is facing in order to grow.
A total of $440 million in funding in multiple rounds has catapulted the company to pedestal level where it can really explode to future prospects. The two biggest external shareholders are Tiger Global at 14.75%, followed by Accel and Alpha Wave at 14.26% and 13.35% respectively. Co-founder and CEO Rahul Garg has a holding of 12.67% as an owner in the firm that shows personal investment in the growth of Moglix.
Future Outlook and Market Dynamics
The slowdown would be worrisome to investors, mainly because it arrives much earlier than expected in the firm’s growth curve. However, one must note that sharp decelerations are par for the course when such a business experiences accelerated growth – as has been the phenomenal case with Moglix during FY23. Fast growth brings its own set of its intrinsic challenges, including issues related to staff management, liquidity, and operational scaling.
The investors will be scrutinizing Moglix in the upcoming quarters to understand if this slowdown is a reflection of a wider market condition or an outcome of the operational complexities associated with such very high growth. How adaptability and innovative capability help this firm continue to lead through complexity will be essential for maintaining their market position and long-term success in B2B e-commerce.
