Vakrangee's Q2 FY2024-25: Transforming India’s Retail Landscape with Largest Last-Mile Distribution Network and New Strategic Initiatives

Vakrangee's Q2 FY2024-25: Transforming India’s Retail Landscape with Largest Last-Mile Distribution Network and New Strategic Initiatives

Vakrangee Limited, with its “Sab Kaam Ek Dukaan” model, is revolutionizing last-mile distribution in India, bringing essential services to underserved communities. This comprehensive Q2 FY2024-25 report sheds light on Vakrangee’s impressive financial growth, new business strategies, and significant plans under its Vision 2030.

Key Financial Highlights

1. Revenue and Profit Growth: Vakrangee reported a 26.4% increase in revenue YoY, achieving total revenue of ₹66.06 crores. Profit after tax (PAT) also saw an impressive growth of 39.4% YoY.
2. Expanded Transaction Volume: The quarter’s gross transaction value (GTV) crossed ₹12,816.9 crores, with over 3.23 crore transactions. This milestone indicates the increasing utilization of Vakrangee’s services across the country.

Strategic Business Initiatives

Growth in Distribution and Banking Services:

• With 532 Master Franchisees appointed across 33 states, Vakrangee is rapidly expanding its Vakrangee Kendra outlets, which now total 21,912. The company aims to achieve 100% district coverage by March 2025, thus creating a strong last-mile network for delivering essential services to remote areas.
• New Banking Partnerships: Vakrangee has onboarded four new banks, including Kotak Mahindra Bank and Central Bank of India, increasing the reach and accessibility of banking services.

Private Label Products:

• Launching its own apparel line, Vakrangee has piloted private-label products, which it plans to scale nationally. This initiative aligns with Vakrangee’s e-commerce segment and will leverage the vast Kendra network for distribution, adding a significant retail vertical.

Expansion into ATMs:

• Following the acquisition of Vortex Engineering, Vakrangee is set to streamline its ATM operations. This acquisition supports Vakrangee’s plan to increase its ATM network to 15,000 by 2030, thereby enhancing financial inclusion.

BharatEasy Mobile Super App:

• Vakrangee launched an upgraded beta version of the BharatEasy Super App, offering various consumer services, from e-commerce to healthcare, travel, and financial services. This digital platform complements the physical Kendra network, creating a seamless O2O (Online to Offline) ecosystem.

Vision 2030 Goals

Vakrangee’s Vision 2030 is ambitious, aiming to become India’s most extensive last-mile retail distribution platform. The company targets:

• Over 3 lakh outlets by 2030, ensuring accessibility to essential services in every corner of India.
• A projected annual revenue of $1 billion and GTV exceeding $150 billion.
• The expansion of the ATM network to 15,000 locations, further integrating its banking and financial services.

Sustainability and ESG Focus

Vakrangee has committed to sustainable growth through its ESG (Environmental, Social, and Governance) initiatives, focusing on financial inclusion, digitalization, and environmental consciousness. The company’s sustainability score places it among the top companies in the S&P Global Bronze Class, reinforcing its role as a responsible business.

Conclusion

With its multifaceted growth strategy, Vakrangee is poised to transform India’s rural and urban retail infrastructure. For stakeholders, consumers, and partners, this expansion means greater access to banking, e-commerce, healthcare, and more, reinforcing Vakrangee’s role as a driver of digital and financial inclusion in India.