Animall, the Gurugram-based online platform for buying and selling cattle, has experienced remarkable growth in the fiscal year ending March 2023. The four-year-old firm achieved a substantial 4X surge in gross revenue, reaching Rs 30.45 crore in FY23 compared to Rs 7.18 crore in FY22. Animall managed to control its losses, which saw a modest increase of just over 1% in FY23.
The majority of Animall’s revenue, over 95%, came from cattle trading, while the remaining portion was derived from artificial insemination, marketplace commission, subscription income, and direct income from the sale of milk. The company generated an overall revenue of Rs 35.5 crore during FY23, which included income from the sale of milk worth Rs 1.11 crore and interest and gain on financial assets of Rs 3.93 crore.
Founded in 2019 by Neetu Yadav, Kirti Jangra, Anurag Bisoyi, and Libin Babu, Animall claims to have sold over 850,000 cattle, amounting to Rs 4,000 crore of gross transaction value (GTV). The company currently operates at a monthly run rate of Rs 350 crore.
Despite its impressive revenue growth, Animall faced rising expenses, with the cost of sales being the largest cost element, constituting 35.4% of the overall expenses. This cost surged 4.5X to Rs 28.41 crore in FY23 from Rs 6.31 crore in FY22. Employee benefit expenses were the second major cost, increasing by 70.4% to Rs 19.25 crore during FY23. Other expenses, including outsourced operating costs, advertisement, and marketing, contributed to a total expenditure of Rs 80.2 crore during FY23, reflecting a 44.5% increase from Rs 55.5 crore in FY22.
Animall managed to keep a check on losses, which grew by 1.1% to Rs 44.7 crore during FY23 compared to Rs 44.2 crore in FY22. The company reported an improved EBITDA margin of -124.25%, while the return on capital employed (ROCE) registered at -58.76% in the last fiscal year. On a unit level, Animall spent Rs 2.63 to earn a rupee of operating revenue during FY23.
The company has raised around $23 million (~Rs 170 crore) to date from investors such as Beenext, Peak XV Partners, Nexus Ventures, Rocketship.vc, among others. In July 2021, Animall secured $14 million in a Series B funding round at a valuation of around $75 million or Rs 562 crore.
Animall faces competition from other platforms in the animal trading business, including Pashu Mall, Pashu Mela, MoooFarm, Pashushala, and Pashu Vyapar. Despite the immense addressable market in rural areas, Animall encounters challenges related to cash transactions, post-sale animal health concerns, and the common occurrence of buyers/sellers changing their minds.
While Animall has impressed investors with its transaction volume, turning a profit in this complex market remains a challenge. The high sales cost suggests a willingness to absorb the expenses associated with funneling sales through its platform. However, the sustainability of these transactions when the company demands the ‘real’ cost of transacting remains uncertain. Animall may need to offer additional value-added services to retain customers and sustain market growth.
In conclusion, the path to actual profitability for Animall appears distant in a challenging market, and the company will likely need to navigate various dynamics to secure its foothold and continue its growth trajectory.