Wakefit Trims Loss By 90% To INR 15 Cr In FY24

Bengaluru-based D2C furniture and mattress startup Wakefit managed to trim its net loss by 90% to INR 15.05 Cr in the fiscal year 2023-24 (FY24) from INR 145.68 Cr in the previous year, as the top line registered a strong growth and margins improved.

Wakefit’s revenue from operations jumped 21% to INR 986.35 Cr from INR 812.62 Cr in FY23. 

Besides, Wakefit also registered an other income of INR 30.98 Cr, more than 4X from the INR 7.39 Cr it made last year. This included an interest income on financial assets of INR 19.38 Cr, a gain of INR 4.38 Cr on the sale of an unnamed investment, rental income of INR 3.63 Cr, among others.  

With this, the startup’s total income for the fiscal stood at INR 1,017.33 Cr. 

This comes three months after the startup said it attained profitability at an EBITDA level. Back in September, Wakefit said its EBITDA stood at INR 65 Cr in the fiscal. 

“As we prepare for the next phase, we will focus on sustaining this profitability while scaling our business, ensuring that our long-term growth trajectory remains strong,” the startup’s cofounder and CEO Ankit Garg said then. 

Founded in 2016 by Garg and Chaitanya Ramalingegowda, Wakefit offers a range of sleep and home-related products, including mattresses, pillows, bed frames, mattress protectors, sofas, study tables, bookshelves, shoe racks, and TV units. 

It counts the likes of Verlinvest, Peak XV Partners, Sequoia Capital, among others, as its investors. The startup has raised over $148 Mn since inception. 

Where Did Wakefit Spend? 

The startup’s total expenses rose 7% to INR 1,032.38 Cr during the year under review from INR 965.69 Cr in the previous fiscal year. 

Cost Of Materials Consumed: This was Wakefit’s largest expense in the fiscal. It spent INR 463.97 Cr on raw materials in FY24, down 2% from the INR 471.71 Cr spent in the fiscal prior. 

Employee Benefit Expenses: The startup spent INR 134.63 Cr on its employees in FY24, a 27% increase from INR 105.77 Cr spent last year. 

It is pertinent to mention that Wakefit also spent INR 60.29 Cr on contractual employees in the fiscal, an increase of 18% from INR 51.20 Cr spent in FY23. 

Promotional Expenses: The startup cut its ad expenses sharply in FY24. Wakefit spent INR 77.36 Cr on advertising and promotions in FY24, a decline of 19% from INR 95.91 Cr in the previous fiscal year.