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Jofie Yordan · · 5 min readIndonesia’s GudangAda posts 9x revenue jump in FYE 2021, but losses widen
Indonesia-based GudangAda has garnered a lot of attention in the last three years. Even though it was only founded in 2019, the startup has already raised US$135 million to date.
In mid-2021, the FMCG-focused B2B marketplace said it was close to breaking even and expected to reach profitability within a year and a half.
GudangAda / Photo credit: GudangAda
For the financial year ending (FYE) December 31, 2021, GudangAda has indeed achieved significant growth. It recorded revenue of US$4.8 million in the period, up 9x compared to the previous year, according to its financial report available on VentureCap Insights.
However, the company was still loss-making for the period. Its loss before tax stood at US$25 million, up from US$10 million in the previous year. The firm did not provide details of the factors that contributed to the loss.
In a previous Tech in Asia report, GudangAda founder and CEO Stevensang said that the company’s expenses mostly came from operations and digital marketing activities.
The firm also appears to be working on cutting costs recently. In December 2022, GudangAda laid off a number of its employees, based on the LinkedIn posts from some of those affected.
GudangAda did not respond to Tech in Asia’s questions about the layoffs.
However, a spokesperson for the firm says that entering 2023, “GudangAda’s management ensures that the company is in good condition to navigate the B2B FMCG business in Indonesia.”
That said, high inflation rates and rising fuel prices may hinder the firm’s growth.
Cutting costs
The company’s decision to cut its headcount may be to fulfill its target of achieving profitability in the near future, despite uncertain macroeconomic conditions and the threat of recession.
According to its financial report, GudangAda’s cash flow used for operating activities increased significantly in FYE 2021. The figure stood at US$21 million, up from US$7 million in the previous year.
Even so, the US$100 million funding it banked in mid-2021 pushed the company’s total assets to US$110 million for the reported period.
Revenue generator
Challenges ahead
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The B2B marketplace is making efforts to achieve profitability in the near future but high inflation rates and rising fuel prices may hinder its growth.
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