mCaffeine’s standalone net loss widened 6.8X to INR 56.67 Cr in FY22 from INR 8.3 Cr in FY21
The D2C personal care startup’s operating revenue doubled to INR 135.23 Cr in FY22
Led by the rise in employee benefit and advertising expenses, mCaffeine’s total expenses rose 2.6X YoY to INR 192.43 Cr
D2C personal care startup mCaffeine’s standalone net loss widened 6.8X year-on-year (YoY) to INR 56.67 Cr in the financial year 2021-22 (FY22) due to a surge in its expenses.
The D2C startup had reported a net loss of INR 8.3 Cr in FY21.
mCaffeine, which earns revenue from sales of its products, posted a 2X jump in operating revenue to INR 135.23 Cr in FY22 from INR 66.51 Cr in FY21, as per the filings of its parent company, PEP Technologies, with the Ministry of Corporate Affairs.
Total revenue, including other income, doubled to INR 135.76 Cr from INR 66.58 Cr in FY21.
In line with the growth in revenue, mCaffeine’s FY22 expenses surged on the back of a rise in employee benefit and advertising expenses. Total expenses rose 2.6X to INR 192.43 Cr in FY22 from INR 74.88 Cr in FY21.
Employee benefit expenses grew 3.5X to INR 74.88 Cr from INR 20.02 Cr in FY21, while expense for purchases of stock-in-trade nearly doubled to INR 54.22 Cr in FY22 from INR 27.45 Cr in the previous fiscal year.
The Mumbai-based startup saw a 2.7X rise in other expenses, including rent, insurance, legal professional charges, advertising and promotional expenses, among others. Other expenses stood at INR 119.6 Cr in FY22 as against INR 44.63 Cr in the previous year.
Advertising and promotional expenses jumped 2.8X to INR 72.6 Cr from INR 25.51 Cr in FY21.
mCaffeine, founded in 2016 by Tarun Sharma, Vikas Lachhwani, Vaishali Gupta, Mohit Jain and Saurabh Singhal, sells caffeine-infused skin and hair care products.
The startup raised over $31 Mn (INR 240 Cr) in March 2022 in its Series C funding round led by Paragon Partners. It has raised a total funding of $37.5 Mn so far.
The startup, backed by the likes of Sharrp Ventures and Singularity Growth Opportunities Fund, competes with other D2C beauty brands such as Plum and Mamaearth.
According to an Inc42 report, beauty and personal care will remain the fastest-growing D2C segment between 2022 and 2030, expanding at a CAGR of 27%. The segment had a market size of $4 Bn in 2022 and is estimated to grow to $28 Bn by 2030.