eShakti FY23: Net Loss Jumps 23% To INR 46.1 Cr, Revenue Up 19%

Chennai-based fashion ecommerce platform eShakti’s net loss increased 23% during the year ended March 31, 2023. The company’s loss stood at INR 46.1 Cr in the financial year 2022-23 (FY23) as against INR 37.5 Cr in the previous year, largely on account of higher burn.

Operating revenue grew 19% to INR 154.5 Cr during the year under review from INR 129.9 Cr in FY22. 

Being an ecommerce company, eShakti primarily earns revenue from sale of goods, services, and gift coupons.

Founded in 2011 by B G Krishnan, eShakti specialises in custom clothing designs for women. It sells its products through its portal, eShakti.com. It claims that it operates on an asset-light model supported by advanced technology and robust systems, ensuring meticulous order tracking for high-quality products tailored to individual sizes, heights, and styles.

Besides India, the company provides customised women’s apparel in over 30 countries, including the US, the UK, France, Germany, Australia. 

Including other income, eShakti’s total revenue grew 20.7% to INR 157.8 Cr in FY23 from INR 130.65 Cr in the previous fiscal year.

Where Did eShakti Spend?

The increase in expenditure outpaced the growth in revenue. The company’s total expenditure rose 21% to INR 203.9 Cr in FY23 from INR 168.14 Cr in FY22.

Cost of Materials: The startup’s biggest expense was the cost of materials. It spent INR 51.7 Cr under this head in FY23, an increase of 48% from INR 34.6 Cr in the previous year.

Transportation Cost: It spent INR 41.3 Cr on transportation expenses, up 81% from INR 22.8 Cr in FY22.

Advertising Expenses: The startup’s advertising costs increased 15% to INR 24.9 Cr in FY23 from INR 21.6 Cr in FY22.

Employee Cost: Employee benefit expenses declined 3% to INR 31.3 Cr during the year under review from INR 32.3 Cr in FY22.

eShakti competes with the likes of  LetsDressUp, WYO, Salt Attire and Freshmonk, among others. It has raised $33.3 Mn in funding till date and counts Paragon Partners and Chiratae Ventures among its investors.

eShakti operates in the fast-growing ecommerce market. As per an Inc42 report, India’s ecommerce sector will become an over $400 Bn opportunity by 2030. Of this, the fashion apparel and accessories segment is likely to account for over $112 Bn.