Bewakoof, the D2C brand under Aditya Birla Group’s TMRW, achieved a nearly 60% reduction in its losses for the fiscal year concluding on March 31, 2023, primarily attributed to a significant increase in ‘other income’.
The Bengaluru-based brand registered a net loss of INR 12.7 Cr in the financial year 2022-23 (FY23), marking a 58% decrease from INR 30.7 Cr in FY22.
Nevertheless, there was a decrease in sales during the assessed period. Bewakoof recorded operating revenue of INR 147.1 Cr in FY23, reflecting an 8% decline from INR 160.19 Cr in the preceding fiscal year.
Established in 2012 by Prabhkiran Singh, the D2C startup earns revenue by offering a range of products, including clothes, accessories, notebooks, and backpacks, designed to cater specifically to the millennial audience.
The startup experienced a 64% surge in its other income, reaching INR 82 Cr in FY23 compared to INR 50.23 Cr in FY22. With the inclusion of other income, the total income saw a 9% increase, reaching INR 229.43 Cr, up from INR 210.42 Cr in FY22.
Bewakoof’s Expense Allocation: Procurement, Salaries, Advertising
The total expenditure showed minimal change, staying nearly constant at INR 241.8 Cr in FY23 compared to INR 240.5 Cr in the preceding year.
As a D2C brand, the startup allocated the largest portion of its expenses to the procurement of finished goods, amounting to INR 85.6 Cr. Nonetheless, this marked a 2% decrease from the INR 87.4 Cr spent in the prior year.
During the reviewed year, the startup allocated INR 59 Cr towards employee salaries and additional benefits, reflecting a significant increase of 47% from the INR 40 Cr spent in FY22. This suggests a growth in the startup’s workforce during FY23.
Advertising expenses witnessed a 17% decline, decreasing to INR 28 Cr from INR 33.7 Cr in FY22.
In FY23, Aditya Birla Group‘s brand conglomerate TMRW infused INR 200 Cr into Bewakoof to secure a controlling stake in the D2C startup. At the point of investment, Bewakoof outlined its intention to utilize the funds for brand development and the expansion of its offerings into the segments of teens and kids wear within the subsequent two years.
Before this investment, the startup had support from notable backers such as Investcorp, IvyCap, and Spring Marketing Capital.
In the rapidly expanding D2C apparel market in India, Bewakoof competes with brands such as The Souled Store, Snitch, and Damensch.
Continue Exploring: Global apparel and fast fashion giants buck trend with 40-60% sales surge among young consumers in FY23
