New-age luggage brand Mokobara reported a notable increase in its operating revenue, surpassing fourfold growth to reach INR 53 crore in the financial year ending March 2023, as disclosed in the company’s regulatory filings.
The startup, supported by investors such as Saama Capital and Sauce VC, announced a 78% increase in losses, amounting to approximately INR 8 crore for the year.
In FY22, Mokobara achieved a turnover of around INR 12 crore in operating revenue, coupled with a loss of nearly INR 4 crore.
Mokobara’s total expenses in FY23 amounted to about INR 61 crore, nearly three times higher than the INR 16 crore spent in FY22. The most substantial component of expenditure for Mokobara was the purchase of stock, with INR 29 crore expended in FY23 as opposed to INR 17 crore in FY22.
On September 20, it was reported that the company was in talks with venture investor Peak XV Partners (formerly Sequoia Capital India) for an expected investment of $12-15 million (INR 99-124 crore). This investment could value the startup at $65-80 million (INR 541-666 crore). In October, the company raised $3.6 million (INR 29 crore) from existing investors such as Sama Capital and Sauce VC.
Continue Exploring: Mokobara Secures $3.6M Investment for Expansion from Current Investors!
During the fiscal year 2023, the company invested INR 16 crore in digital marketing, marking a substantial rise from the INR 5 crore expenditure recorded in FY22.
Founded by former Urban Ladder executives Sangeet Agrawal and Naveen Parwal, Mokobara began its operations in 2020. Sources familiar with its sales figures suggest that it is currently operating at an annualized revenue run rate of INR 140-150 crore.
The omnichannel retailer operates numerous stores in Bengaluru, Delhi, Mumbai, and Pune. In a press statement earlier this year, it announced plans to inaugurate 25 additional stores within the next eighteen months.
The company is entering the luggage segment, challenging established brands such as American Tourister, VIP, and Safari. Despite being positioned at a relatively higher price point compared to the current market players, it aims to establish itself as a premium choice.
According to a report from investment banking firm Merisis Advisors in February, the Indian luggage industry experienced a sales growth ranging from 50-70% in 2022 compared to the pre-pandemic period of 2019, which was historically considered the sector’s most robust growth year.
This year, despite a challenging funding climate, several direct-to-consumer (D2C) brands like Mokobara, boasting omnichannel operations, have successfully raised funding from venture capital firms. With the backing of VC support, these companies, once scaled, are positioning themselves to challenge prominent and established brands across a diverse range of sectors.
Certain investments have the potential to yield profitable returns for investors. Fireside Ventures, a venture capital firm with a focus on consumer-oriented ventures, emerged as the earliest institutional investor in the D2C firm Mamaearth’s listed parent company, Honasa Consumer. From this year’s initial public offering (IPO) alone, Fireside Ventures garnered INR 258 crore, retaining unsold holdings valued at INR 821.49 crore in the company. Notably, Fireside had cumulatively invested INR 29.1 crore in Honasa Consumer.
Furthermore, The Souled Store, an apparel startup with a focus on pop culture, secured INR 135 crore in a funding round led by Xponentia Capital in March of this year. In July, Freakins, a direct-to-consumer (D2C) apparel company specializing in denim, raised $4 million (approximately INR 33 crore) in a funding round backed by Matrix Partners India and Blume Ventures. Concurrently, footwear startup Solethreads received $3.7 million (INR 31 crore) in funding from Fireside Ventures.