Melorra’s total revenue jumped 4.6X to INR 364.5 Cr from INR 79 Cr in FY21
The D2C brand’s total expenses grew to INR 471.3 Cr in FY22 from INR 140.4 Cr in FY21
In May 2022, Melorra raised $16 Mn in a Series D funding round
Bengaluru-based gold and diamond jewellery startup Melorra’s loss surged over 73% to INR 106.7 Cr in the financial year 2021-22 (FY22) from INR 61.4 Cr in FY21, despite a 4.6X rise in its total revenue.
The Lightbox-backed D2C brand’s total revenue grew to INR 364.5 Cr in FY22 from INR 79 Cr in FY21. On the other hand, its expenses also jumped 3.3X to INR 471.3 Cr in FY22 from INR 140.4 Cr in the previous year.
The startup, led by Saroja Yermailli, saw its sales climb 363.6% to INR 364.4 Cr from INR 78.6 Cr in FY21. The rise in sales could be attributed to the startup’s foray into the offline stores.
A majority of Indians see gold as an asset class and prefer buying it from offline stores rather than online. Consequently, most of the jewellery brands are increasing their presence in multiple cities across the country.
In 2020, Melorra said it would invest $50 Mn to set up over 350 retail stores by 2026. It also said that it expected these offline stores to contribute 50-60% to its topline in the future.
Surge In Advertising Expenses
The rise in Melorra’s total expenses was led by a sharp surge in its advertising and marketing expenses. The startup, which has roped in Bollywood actor Shraddha Kapoor as brand ambassador, spent INR 120 Cr on advertising in FY22, a 175% jump from INR 43.7 Cr in the previous year.
Melorra’s employee benefit expenses also grew 1.5X to INR 30 Cr from INR 19.2 Cr in FY21. Employee benefit expenses usually comprise salaries of employees, PF Contribution, gratuity, and other employee welfare benefits.
Founded in 2016 by Yermamilli, Melorra offers lightweight and fashionable gold and diamond jewellery for contemporary wardrobe. The startup delivers across 26,000 pin codes in India, the US, the UK, Europe and the UAE. Melorra claims to launch 75 new designs every Friday to attract new customers.
In May this year, Melorra raised $16 Mn in a Series D round. The D2C brand has raised $54 Mn in funding till date and counts Lightbox, Symphony Asia, and Blacksoil Capital among its investors.
Besides competing against the deep-pocketed traditional jewellery chains such as Tanishq, Malabar Gold, and PC Chandra Jewellers, the startup also competes with D2C brands such as BlueStone, Giva, and CaratLane.
The D2C space is rapidly gaining popularity in the country. Though the segment is dominated by startups, established conglomerates like Nestle India and ITC are also trying to tap the space. India is currently home to over 50K digital-first startups which are operating in the D2C space. The country’s D2C segment is estimated to become a $300 Bn market by 2030, according to an Inc42 report.