Mamaearth losses balloon to Rs 5.91 crore in FY20
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Honasa Consumer-operated D2C personal care brand Mamaearth widened its losses to Rs 5.91 crore for the financial year 2019-2020, compared to Rs 3.5 crore in the previous year.
Its total expenses went up 450.79% to Rs 117.93 crore in FY20, compared to the year-ago figure of Rs 21.41 crore. Its largest cost components were freight and transportation spends, as well as advertising promotional expenses.
Its transportation costs stood at Rs 15.02 crore in FY20, an increase from Rs 2.6 crore the previous year.
Advertising promotional expenses ballooned nearly 427.36%. The startup reported Rs 45.84 crore in advertising promotional spends, a key component for internet-based D2C companies. In FY19, the number stood at Rs 8.6 crore.
On the other hand, the company reported a 551% increase in revenue from operations to Rs 109.78 crore, from Rs 16.83 crore in FY19.
Founded in 2015 by Varun and Ghazal Alagh, the startup is backed by Sequoia Capital India, Fireside Ventures, Stellaris Venture Partners, Shilpa Shetty Kundra and Rishabh Mariwala’s Sharp Ventures.
In January 2020, the startup raised $18 million in a round led by Sequoia Capital India.