Bewakoof’s FY23 Loss Halves To INR 12.7 Cr, Sales Dip 8%

SUMMARY

The D2C brand, owned by Aditya Birla Group’s TMRW, saw its net loss decline 58% in FY23 due to a sharp jump in other income

However, Bewakoof’s operating revenue fell 8% to INR 147.1 Cr in FY23 from INR 160.19 Cr in the previous fiscal year

Total expenditure remained almost flat at INR 241.8 Cr in FY23 against INR 240.5 Cr in the previous year

D2C brand Bewakoof, owned by Aditya Birla Group’s TMRW, managed to reduce its loss by almost 60% in the financial year ended March 31, 2023 due to a sharp rise in ‘other income’.

The Bengaluru-based brand reported a net loss of INR 12.7 Cr in the financial year 2022-23 (FY23), a decline of 58% from INR 30.7 Cr in FY22.

However, its sales also dipped during the year under review. Bewakoof’s operating revenue stood at INR 147.1 Cr in FY23, a decline of 8% from INR 160.19 Cr in the previous fiscal year.

Founded in 2012 by Prabhkiran Singh, the D2C startup earns revenue by selling clothes, accessories, notebooks and backpacks, targeted at millennials.

The startup’s other income surged 64% to INR 82 Cr in FY23 from INR 50.23 Cr in FY22. Including other income, total income rose 9% to INR 229.43 from INR 210.42 Cr in FY22.

Where Did Bewakoof Spend?

Total expenditure remained almost flat at INR 241.8 Cr in FY23 against INR 240.5 Cr in the previous year.

Procurement Cost: Being a D2C brand, the startup spent the highest amount on procurement of finished goods – INR 85.6 Cr. However, this was a decline of 2% from INR 87.4 Cr in the previous year.

Employee Benefit Expenses: The startup spent INR 59 Cr on employee salaries and other benefits during the year under review, a jump of 47% from INR 40 Cr in FY22. This also indicates that it increased its headcount in FY23.

Advertisement Expenses: Advertising costs dropped 17% to INR 28 Cr from INR 33.7 Cr in FY22.

Aditya Birla Group’s house of brands business TMRW invested INR 200 Cr in Bewakoof in FY23 to acquire a majority stake in the D2C startup. At the time of investment, Bewakoof said it would use the funds for brand building and expanding into teens and kids wear categories over the next two years.

Prior to that, the startup counted the likes of Investcorp, IvyCap, and Spring Marketing Capital among its backers.

Bewakoof competes against the likes of The Souled Store, Snitch, and Damensch in the fast-growing D2C apparel market in India.