Sustainable footwear brand Neeman's reports Rs 69 crore revenue in FY23; Losses stood at Rs 34 crore

Neeman’s, a sustainable footwear startup, has reported a 47% increase in its revenue from Rs 47 crore in FY22 to Rs 69 crore in FY23. 

However, the strong revenue growth was shadowed by a steep rise in losses, which soared to Rs 34 crore, marking a 36% increase from the previous year's Rs 25 crore.

Adapting sustainable practices 

The five-year-old startup is crafting footwear from eco-friendly materials like merino wool, organic cotton, recycled PET bottles, and recycled tires. Neeman’s primarily sells its products through its website and various e-commerce platforms such as Flipkart and Amazon. 

The brand has also made significant strides in sustainability, having recycled over one million plastic bottles and selling around 80,000 pairs of shoes monthly.

Rising costs impacting profitability

A major factor in the company’s financial situation is the high cost of raw material procurement, which accounted for 39% of its total expenditure, rising to Rs 40 crore in FY23.

Employee benefits also surged 2.25 times during the same period. Overall, the company’s total expenditure increased by 43.06% to Rs 103 crore in FY23, significantly impacting its profitability.

Who owns Neeman's?

To date, Neeman’s has raised Rs 94 crore in funding, with Sixth Sense Ventures holding the largest external stake at 42.94%, followed by Anicut Capital.

Co-founders Taranjeet Singh Chhabra and Amar Preet Singh hold a combined 29.68% of the company. Despite its sustainability efforts, Neeman’s faces the challenge of attracting profitable buyers in a competitive market.

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