The Moms Co FY23: Net Loss Jumps 60% To INR 64 Cr

SUMMARY

The Good Glamm Group-owned D2C mom and baby care brand operating revenue grew 38% YoY to INR 71.22 Cr in FY23

The startup's total expenses jumped 67% year-on-year during the year under review, outpacing the rise in its revenue

The Good Glamm Group acquired The Moms Co in 2021, however, the D2C brands founders reportedly filed default notices against the content-to-commerce group this year

The Good Glamm Group-owned D2C mom and baby care brand The Moms Co’s net loss zoomed 60% to INR 64.38 Cr in the financial year 2022-23 (FY23) from INR 40.14 Cr in the previous fiscal year due to a rise in its expenses.

The D2C brand’s operating revenue grew 38% to INR 71.22 Cr during the year under review from INR 51.51 Cr in FY22. Including other income, total revenue grew 40% to INR 73.51 Cr in FY23 from INR 52.49 Cr in the previous fiscal year.

Founded by Malika and Mohit Sadani in 2016, The Moms Co sells baby and pregnancy care products. Besides, it also sells beauty products.

Content-to-commerce platform The Good Glamm Group acquired The Moms Co in 2021. At the time, The Moms Co was aiming to grow to INR 500 Cr revenue run rate by 2023.

It also planned to increase its retail presence to over 20,000 touchpoints from 1,500 then to drive adoption of its personal care and baby care ranges.

However, earlier this year, the founders of The Moms Co, along with another startup acquired by The Good Glamm Group, Sirona Hygiene, and the Indian Angel Network (IAN), reportedly filed default notices against The Good Glamm Group. They claimed that The Good Glamm Group did not make the final payments due to them.

Earlier this year, reports said that the cofounders of The Moms Co stepped away from its day-to-day operations as the content-to-commerce unicorn increased its stake in the latter to 90% from 75% earlier.

Where Did The Moms Co Spend?

The startup’s total expenses jumped 67% year-on-year during the year under review, outpacing the rise in its revenue. Total expenses stood at INR 137.87 Cr in FY23 as against INR 82.58 Cr in FY22.

Advertising Expenses: Advertising and promotional activities continued to be the focus of the D2C brand in FY23. Ad expenses shot up 74% to INR 56.99 Cr during the year from INR 32.78 Cr in FY22. The startup roped in actress Sonam Kapoor for promotions during the year under review.

Stock in Trade Expenses: This category, which accounts for purchases of finished goods that the startup bought for its business, was the second biggest contributor to expenses. In FY23, the stock in trade expense jumped 73% to INR 44.12 Cr from INR 25.52 Cr in the previous fiscal year.

Employee Expenses: The Moms Co managed to decrease its employee expenses in FY23. Employee benefit expenses fell 21% to INR 9.47 Cr in FY23 from INR 11.92 Cr in the previous year.

Telephone Postage Cost: The expenses under this head, which encompasses costs related to communication, including telephone, internet, and postage, saw a big increase. The startup spent INR 7.85 Cr on telephone postage in FY23 as against a mere INR 21,000 in the previous year.

The Moms Co competes with the likes of Mamaearth, FirstCry and BabyChakra in the burgeoning D2C market of the country. As per Inc42 estimates, the BPC market is slated to breach $28 Bn by 2030.