ShopUp has reported accumulated losses of Tk1,277 crore as of June 2023, burning 63% of its share capital to build a nationwide supply chain network serving over 3 crore people. Despite the losses, ShopUp’s consolidated revenue grew 55% to $129 million in FY 2022-23, driven by wholesale supplies of essential commodities and FMCG to retail shops. The company’s net annual loss surged by 23% to $49 million.
While showing a gross profit of 1.3%, ShopUp’s significant administrative and financial expenses led to the increased net loss. However, excluding the $14 million non-cash ESOP expenses, actual losses decreased by 17%. The company achieved EBITDA profitability in December 2023 and aims for a net profit in the 2024-25 fiscal year. Concerns arose over ShopUp’s $38 million in receivables and the drop in net cash to $23 million, while its debt increased to $46 million. Nevertheless, ShopUp remains confident with $69 million cash in hand, planning further investment to expand its distribution hubs and market reach.
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