Yu Foods’ FY24 Revenue More Than Doubles To INR 15.7 Cr

D2C brand Yu Foods’ operating revenue surged 103.9% to INR 15.7 Cr in the financial year 2023-24 (FY24) from INR 7.7 Cr in the previous fiscal year.

However, net loss rose 80.5% to INR 11.2 Cr from INR 6.2 Cr in FY23. 

Founded in 2021 by Bharat Bhalla and Varun Kapur, Yu Foods offers breakfast, lunch and dinner meal bowls. It offers more than 25 instant food products, including noodles, pastas, desserts and halwa, among others. The startup initially launched instant cup noodles and pastas in its founding year and later forayed into ready-to-cook noodles, pastas, and beverages. 

Besides its own website, the startup sells its products via ecommerce and quick commerce channels. Its products are also available in 7,500 retail stores. 

According to the company’s regulatory filings, Yu Foods’ Amazon shipping expenses declined to INR 11.8 Lakh in FY24 from INR 14 Lakh in the previous fiscal year. Cofounder Bhalla told Inc42 that this decline was because the D2C brand shifted to the “Amazon Buying” model, under which the ecommerce giant purchases inventory in bulk and acts as a wholesaler. 

Similarly, its Unicommerce expense in FY24 declined to just INR 43,771 from INR 5.4 Lakh in FY23. Spending on Shiprocket too fell to INR 34,379 from INR 3 Lakh in FY23. 

Bhalla said this decline was because its own online channel contributed miniscule percentage of its revenue. Currently, Yu Foods earns 40% of its revenue from quick commerce, 10% from ecommerce channels, 35% from offline business, and the remaining 15% from airlines.

The cofounder said that the startup is on course to post a revenue of INR 40 Cr in FY25, and is currently clocking a monthly revenue of INR 5 Cr.

The D2C brand raised INR 55 Cr ($6.5 Mn) in its Series B funding round, led by Ashish Kacholia and Asian Paints Promoter Group, in October last year. Before that, it bagged $2.4 Mn in its Series A funding round from the same investors. 

Tracking Down Yu Foods’ Expenses

The startup’s total expenses zoomed 92.86% to INR 27 Cr in FY24 from INR 14 Cr in the previous fiscal year.

Here is a quick glance at where the startup spent: 

Employee Benefit Expenses: The spending under the head rose 35.71% to INR 3.8 Cr in FY24 from INR 2.8 Cr in FY23. 

Marketing Expenses: Marketing expenses more than doubled to INR 5.7 Cr in FY24 from INR 2.6 Cr in the previous fiscal year.

Selling & Distribution Expenses: The spending under this head grew 85.71% to INR 1.3 Cr from about 70 Lakh in FY23.