Mensa Brands' FY23 revenue almost triples to Rs 1,317 crore in FY23: Report

Mensa Brands, a roll-up e-commerce startup, has reported a significant revenue increase in the fiscal year 2023 (FY23). The company's operating revenue soared to Rs 1,317 crore, marking a substantial growth from the previous fiscal year's Rs 339 crore revenue.

The growth, however, came with its own set of challenges, as the company also witnessed a spike in its losses.

Widening losses

Despite the impressive revenue growth, Mensa Brands faced a considerable increase in losses. The company's losses nearly tripled, reaching Rs 329.1 crore in FY23. This was a significant jump from the Rs 134.6 crore loss reported in FY22, indicating a 144% year-on-year increase, Entrackr reported.

Increased expenditure

The increase in losses can be attributed to a rise in various expenses. Mensa Brands spent more on employee benefits, marketing, and other operational costs. The total expenses surged by 254% year-on-year, from Rs 488 crore in FY22 to Rs 1,731 crore in FY23.

Strategic focus and funding

Mensa Brands has been actively acquiring smaller, profitable startups. The company has shifted its focus to larger companies, targeting startups with revenues in the Rs 50-200 crore range. Mensa Brands has raised significant funding, including a $40 million debt-financing round from EvolutionX and a Rs 300 crore debt round from TradeCred.

Despite the financial challenges, Mensa Brands remains a significant player in the DTC (Direct-to-Consumer) space in India. The company claims that 90% of its brands are profitable at the EBITDA level, and it has achieved break-even at the corporate level.

Earlier in August this year, The brand announced that it would feature three of its brands on multiple buyer-side apps of government-backed ecommerce protocol, Open Network for Digital Commerce (ONDC).

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