Direct-to-Consumer (D2C) brand Bewakoof, owned by Aditya Birla Group’s TMRW, has successfully cut its losses by nearly 60% in the fiscal year ended March 31, 2023, attributed to a substantial increase in ‘other income.’ Despite an 8% decline in sales, the Bengaluru-based brand reported a net loss of INR 12.7 Cr in FY23, marking a significant improvement from INR 30.7 Cr in FY22.
Founded in 2012 by Prabhkiran Singh, Bewakoof specializes in selling clothes, accessories, notebooks, and backpacks, primarily targeting the millennial demographic.
Financial Highlights:
- Net Loss Reduction: Bewakoof’s net loss decreased by 58%, reaching INR 12.7 Cr in FY23 compared to INR 30.7 Cr in FY22.
- Sales Decline: The operating revenue for FY23 stood at INR 147.1 Cr, reflecting an 8% decline from INR 160.19 Cr in the previous fiscal year.
- Other Income Surge: The startup experienced a remarkable 64% increase in ‘other income,’ reaching INR 82 Cr in FY23 from INR 50.23 Cr in FY22.
- Total Income Growth: Including other income, the total income rose by 9%, reaching INR 229.43 Cr in FY23 compared to INR 210.42 Cr in FY22.
Expenditure Breakdown:
- Total Expenditure: Remaining almost flat at INR 241.8 Cr in FY23, slightly up from INR 240.5 Cr in FY22.
- Procurement Cost: Bewakoof spent INR 85.6 Cr on the procurement of finished goods, representing a 2% decline from INR 87.4 Cr in the previous year.
- Employee Benefit Expenses: Expenditure on employee salaries and benefits increased by 47%, reaching INR 59 Cr in FY23, indicating a growth in the workforce.
- Advertisement Expenses: Advertising costs witnessed a 17% decrease, settling at INR 28 Cr compared to INR 33.7 Cr in FY22.
Aditya Birla Group’s TMRW strategically invested INR 200 Cr in Bewakoof during FY23, acquiring a majority stake in the D2C startup. Bewakoof plans to utilize the funds for brand building and expanding into the teens and kids wear categories over the next two years.
