Tuesday, 20 August 2024, Bengaluru, India
ArisInfra is a B2B e-commerce company that provides construction materials to infrastructure developers by offering a platform to connect with vendors. The platform offering construction materials announced a 6.5 percent decrease in its operational revenue to Rs 696.84 crore in FY24. The startup offers materials for real estate and infrastructure requirements. These services are the primary source of revenue for the company. The startup also offers project management and related services to earn income.
Inc42 mentioned in its report that the firm also earns its income through processing fees and other management services. The total revenue for this financial year declined by 6.9 percent to Rs 702.35 crore through its services and the firm also earned commission from its non-operating services. The company announced the total expenditure to cross Rs 719.2 crore in FY24. The company previously secured has raised around $25.3 million across all its funding rounds since its inception. This includes the latest funding round from angel investors including Jaxay Shah. Earlier, this year the e-commerce startup filed its draft red herring prospectus to raise Rs 600 crore through initial public offerings.
ArisInfra uses machine learning and artificial intelligence for the procurement of construction materials. The company provides an online platform to connect contractors with suppliers. This platform enables customers to connect with approved suppliers, place an order and get it delivered by logistic team. The legal, business sourcing, marketing, hosting, and other expenses made the total expenses stand out at Rs 719.2 crore. However, 30.3 percent of the total expenditure goes to employee benefits. The total expenditure of the firm decreased by 7 percent in FY24. The startup reported a 35 percent increase in its finance costs to Rs 30.3 crore in the same duration.
The e-commerce company saw a decrease in its profit for the financial year 2023 and it plans to improve its business model while offering more innovative solutions, positioning it well in the global market. The company aims to control its losses by reducing its employee benefits and operating expenses. The employee benefits have a 51 percent increase compared to the last year. The construction material cost saw a 98 percent reduction to Rs 20.2 lakh in FY24. ArisInfra competes with other AI and cloud-based construction material manufacturing companies such as Infra.market, BuilsSupply, and more.
Conclusion:
The construction material manufacturing e-commerce startup ArisInfra announced a 6.5% decline in its operational revenue to Rs 696.84 crore in FY24. This B2B e-commerce platform offers an online place to connect real estate and businesses to approved suppliers. The construction material and project management services are the major source of revenue for the company. The net loss increased by 12 percent to Rs 17.3 crore in FY24. The total expenditure of the firm decreased by 7 percent and crossed Rs 719.2 crore in the same duration. The company plans to reduce its expenses on employee benefits to minimize its losses. The company has secured over 25.3 million USD across multiple funding rounds to date.
