toothsi Parent makeO Posts INR 220 Cr Loss In FY23; Revenue Jumps Over 2X

Healthtech startup makeO, the parent of dental tech platform toothsi, posted a 19.5% jump in its net loss at INR 220.2 Cr in the financial year 2022-23 (FY23) from INR 184.3 Cr in the previous year, hurt by a sharp rise in its expenses amid business growth.

makeO, which also owns skin treatment solutions vertical skinnsi, saw its operating revenue more than double to INR 168.4 Cr during the year under review from INR 78.5 Cr FY22.

Orthodontists-turned-entrepreneurs Dr Arpi Mehta Shah, Dr Pravin Shetty, Dr Manjul Jain, and Dr Anirudh Kale launched toothsi in 2018. Later, in 2022, makeO was established as the umbrella brand for the company’s vertical expansion.

toothsi’s products include clear dental aligners and various oral care products. On the other hand, skinnsi sells various skin care products.

makeO earned the largest portion of its revenue from sale of aligners by toothsi, which surged almost 77% year-on-year (YoY) to INR 116 Cr in FY23.

Overall, makeO’s revenue from sale of products increased over 78% to INR 119 Cr in FY23 from INR 66.7 Cr in the previous year.

Meanwhile, skinnsi offers a majority of the company’s services, including laser hair reduction, acne treatment, and dermafacial, among others. 

makeO’s revenue from sale of services jumped a massive 313% YoY to INR 48.6 Cr in FY23.

It is pertinent to note that in FY23, toothsi raised $40 Mn in its Series C funding round for deeper geographic penetration and category expansion. The startup then had over 2,000 partner dental centres across India and was looking to expand to Tier-II cities.

As per its website, makeO, with its two vertical offerings, is currently present in over 17 cities across India and five cities in the Gulf Cooperation Council (GCC). It claims to have more than 22 experience centres across India.

Zooming Into Expenses

In tandem with its growing business, makeO’s total expenses rose 50% to INR 394.8 Cr in FY23 from INR 263.4 Cr in the previous year.

Employee Costs: The startup spent INR 127.4 Cr towards employee benefit expenses in FY23, up over 76% from INR 72.1 Cr spent in the bucket in the prior year.

In that, INR 99.5 Cr was spent on salaries, wages, and bonus, while INR 21 Cr was spent on ESOPs during the year under review.

Marketing Expenditure: makeO’s marketing expenses witnessed almost a 36% rise to INR 91 Cr during the year under review from INR 67 Cr in FY22.

It is pertinent to note that the startup roped in celebrity couple Virat Kohli and Anushka Sharma for its ad campaigns in FY23. 

Cost of Materials Consumed: makeO spent INR 28.7 Cr in this bucket in FY23, a jump of almost 60% from INR 18.1 Cr in the year before.

Consultant Fees: makeO’s spending on consultant fees, including scanning charges and therapists, grew 16% YoY to INR 60.4 Cr in FY23.

makeO is backed by marquee names like Eight Roads Ventures, South Korea-based Paramark, IIFL, and 360 ONE Asset. 

In January this year, the startup bagged another $16 Mn (INR 135 Cr) in a funding round led by 360 ONE Asset and the investment office of Ashish Kacholia. The startup is aiming to further expand its geographic footprint and scale its experience centres.