Mamaearth Revenues Jump 4X to Rs 461 Cr in FY21, Become Profitable
Baby and mother care brand Mamaearth became this year’s first unicorn after raising $ 52 million in its Series F funding round led by its first funder Sequoia. The company has become a leader in the direct-to-consumer (D2C) space for beauty and skin care and was valued at around $ 1.07 billion in this latest cycle.
While Mamaearth is the first unicorn of 2022 and the 44th since January 2021, she is different from most unicorns as she is one of the few to go profitable in FY 21 with a quadrupling of her collection.
Mamaearth raised operating income of Rs 461 crore in FY21, a huge jump from the Rs 109.8 crore in fiscal year 20, according to its annual financial statements with the Ministry of Corporate Affairs (MCA). The company achieved a turnover of 98% of its domestic sales (India) while its global sales, which made up the remainder, increased 9.5 times in fiscal year 21.
The sales boom coupled with improved operational efficiency helped Mamaearth record an after-tax profit of Rs 24.6 crore in FY21, compared to the loss of Rs 5.92 crore in during the year 20.
The five-year-old company focuses on digital marketing channels, primarily social media and influencer marketing to grow its product lines. As a result, its marketing costs were the largest cost center, accounting for 44.1% of annual FY21 costs. These expenses increased almost 4X to reach Rs 192.23 crore during the year. ‘year 21, compared to 49.2 base in year 20.
With increasing demand, the cost of raw materials consumed by Mamaearth also increased 3.5 times to reach Rs 133.1 crore in FY21, compared to Rs 38.3 crore in FY20. Transportation and secondary packaging costs have also increased in line with the overall scale, increasing 4.2 times to Rs 62.7 crore in FY21, from Rs 15.02 crore incurred during from the previous year.
Unlike most startups valued at over $ 1 billion where employee benefits spending is a significant percentage of the company’s spending, in Mamaearth’s case, it was just 6.4% of its costs. annual. This cost increased 3.3 times to Rs 27.8 crore in FY21, while IT and payment gateway costs also increased 3.1 times to Rs 6 crore during the same period.
Overall, Mamaearth’s annual costs increased 3.7 times to reach Rs 435.6 crore in FY21, compared to nearly Rs 118 crore in FY20. At the level unit, he spent Rs 0.95 to earn a single rupee of operating income in FY 21. EBITDA margins also improved from nearly -5% during FY20 to 6.5% over FY21.
Despite the pandemic affecting the financial statements of several companies, Mamaearth has grown at a breakneck pace and exceeded Rs 460 crore in sales in fiscal year 21. The company has also stood out from other unicorns and Internet companies in the phase. development programs aimed at consumers at a profit. Right now, it is one of the most successful D2C brands in India and the company’s financial numbers reflect the same.