How well D2C brand Wakefit performed financially in FY23?

Indian D2C mattress brand Wakefit has reported a significant revenue increase in the fiscal year ending March 2023, reaching Rs 813 crore.

This marks a 28.4% growth from the previous year's Rs 633 crore. Despite this, the startup seen its losses escalate to nearly Rs 150 crore in FY23.

The company's primary revenue comes from selling sleep solutions, including mattresses and pillows, contributing 75% to the total revenue.

This segment alone surged 23.4% to Rs 606 crore in FY22. However, the cost of procurement and manufacturing, which is the largest cost center, increased by 24.9% to Rs 466 crore in FY23.

Other significant expenses such as employee benefits, transportation, legal, and advertising costs pushed the total expenditure to Rs 966 crore, a 29.8% increase from the previous year.

Wakefit's losses have jumped 36.4% to Rs 146 crore in FY23 from Rs 107 crore in FY22. The company's Return on Capital Employed (ROCE) and EBITDA margin stood at -21% and -10%, respectively.

Despite these losses, Wakefit ended FY23 with a cash reserve of Rs 174 crore and other current assets, including receivables and investments, amounting to Rs 212 crore.