Pankaj Chaddah’s Shyft Spent INR 6.9 Cr To Earn INR 71 Lakh In FY21

Former cofounder of Zomato, Pankaj Chaddah’s new venture Shyft (earlier known as Mindhouse) has seen its sales increase by 5X in financial year ending on March 31, 2021. 

The startup which was incorporated in 2019 saw its revenue from operations soar by 432.6% to INR 71 Lakh in FY21 from INR 13 Lakh in FY20. It’s other income also saw a stupendous rise from INR 770 in FY20 to INR 14.2 Lakh, meaning more than the revenue it generated from sales in FY20. 

The curative wellness platform saw its total revenue increase by around 6.4X to INR 85.3 Lakh in FY21, from INR 13.3 Lakh in FY20. 

The startup’s expenses have also risen to INR 6.9 Cr, a 82.4% increase from FY20. Between April 1, 2019 to March 31, 2020, the startup has burnt cash worth INR 3.78 Cr. 

Under expenses, the startup’s employee benefits expenses which includes employees salaries, gratuity, PF contributions and other employee benefits welfare stood at INR 2.9 Cr, a 54.5% increase from INR 1.9 Cr it had spent for the same in FY20. This signifies that the startup has hired rapidly in the previous financial year as its operations strengthened. 

The startup’s other expenses which comprises business promotion expense (advertising), professional charges, instructor fees expenses among others stood at INR 3.4 Cr in FY21 from INR 1.7 Cr in FY20.

Of the other expenses, business promotion expense was the highest at INR 1.6 Cr from INR 39.7 Lakh.

The startup’s losses pegged at INR 4.6 Cr in FY21 from INR 3.6 Cr in FY20. Founded in 2019 by Pooja Khanna and Pankaj Chaddah, Mindhouse initially catered to mental wellness. However, subsequently pivoted to curative wellness. 

Currently, the Shyft offers a range of wellness services to patients suffering from health conditions and chronic illnesses that require significant lifestyle changes to tackle. The startup offers interactive classes, personal coach, and DIY sessions on its app. 

Shyft in November last year raised $6 Mn in seed round led by Binny Bansal, General Catalysts, Better Capital, Kwaish Capital, Anicut Capital among others. Both the cofounders also participated in the round. 

Angel investors Rohit MA of Cloudnine, Ritesh Malik of Innov8, and Karan Singh & Sri Rajan of Bain & Co. were also the participants. In the same month another wellness startup K&L Wellness Technology received $4 Mn from angel investors Vimal Kedia, Surendra Kedia of Manjushree Ventures and Narendra Firodia of Sohamm Group. 

Mental health platforms were one of the sectors which saw a significant rise in the number of customers in the backdrop of the ongoing pandemic. High layoffs, prolonged lockdowns, and uncertainty about life has let more people acknowledge their mental health and have compelled them to take necessary steps. 

According to the Inc42 DataLabs report, the total market size of the healthcare industry in India is estimated to be $202 Bn, marking a growth of 84% from the $110 Bn market size in 2016. 

The global yoga industry is worth over $88 Bn worldwide and is projected to reach $215 Bn by 2025, growing at a CAGR of 11.7%; representing a massive market for yoga-based wellness companies to tap into.

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