B2B e-commerce platform Power2SME showcases robust growth in fiscal year 2023, achieving significant milestones in revenue generation and cost optimization. The company’s consolidated financial statements reveal a noteworthy surge in gross revenue, accompanied by a considerable reduction in losses through strategic measures.
Power2SME, a leading B2B e-commerce platform, has demonstrated substantial growth in the fiscal year ending March 2023, marked by impressive financial performance across key metrics.
The company’s gross revenue soared to an impressive Rs 1,056 crore in FY23, representing a substantial increase from Rs 703 crore in the previous fiscal year, as per its consolidated financial statements filed with the Registrar of Companies (RoC).
An analysis of Power2SME’s revenue streams reveals that income from the sale of goods constituted a significant portion, contributing 99% of the total gross revenue. Additionally, the company generated Rs 6 crore from interest on current and non-current investments, further augmenting its total revenue to Rs 1,063 crore in FY23.
Despite the rapid expansion in revenue, Power2SME focused on optimizing costs, particularly in procurement and overhead expenses. The cost of procurement accounted for 93.4% of the total expenditure, reflecting the company’s commitment to enhancing operational efficiency and driving sustainable growth.
Through prudent cost management strategies, including reductions in employee benefits, insurance, legal/professional, advertising, and finance expenses, Power2SME succeeded in curtailing losses by 9% to Rs 28.5 crore in FY23. Notably, the company’s Return on Capital Employed (ROCE) and Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin also exhibited improvement, underscoring its enhanced financial health.
Despite its last equity funding round in 2018, Power2SME continues to assert its market dominance and poised for significant growth opportunities. With prominent stakeholders such as Accel, Kalaari Capital, and Inventus Capital, the company’s strategic positioning and operational breakeven lay the groundwork for future expansion and potential funding rounds.
As Power2SME navigates its growth trajectory, its steadfast commitment to delivering value to stakeholders remains unwavering. With the potential for further innovation and expansion into new verticals, the company is primed to maintain its upward trajectory and emerge as a formidable player in the B2B e-commerce landscape.
Conclusion:
Power2SME’s remarkable performance in FY23 underscores its resilience and adaptability in navigating dynamic market conditions. With a strong foundation in place and a clear strategic vision, the company is poised to unlock new avenues for growth and solidify its position as a leader in the B2B e-commerce ecosystem.
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