SUMMARY
- mCaffeine’s revenue from operations fell by 6% YoY to Rs 193 crore in FY24.
- Total expenses only slightly decreased by 4.8% YoY to Rs 287.33 crore in FY24.
- The Mumbai-based company’s losses also saw a drop by 6.8% to Rs 85.41 crore in FY24.
Personal care and beauty brand mCaffeine‘s revenue from operations fell by 6% YoY to Rs 193 crore from Rs 205.3 crore in FY23, as shown in its annual financial report filed with the Registrar of Companies (RoC).
It had a consistent growth YoY until FY23 as its revenue grew from Rs 40 crore in FY20 to Rs 205 crore in FY23.
This decline in sales in FY24 was unexpected, especially since the company’s co-founder and CEO, Tarun Sharma, had predicted a 50% increase in sales for FY24, and expected to see profits in FY25.
mCaffeine is known for its line of skincare and haircare products infused with caffeine, which are primarily sold online through various ecommerce sites and its own website.
The brand’s main source of income, product sales, saw a 6% drop to Rs 193 crore in FY24. Additionally, mCaffeine made Rs 8.9 crore from interest income, bringing its total earnings for the year to Rs 201.9 crore in FY24.
While advertising expenses were the biggest category of costs, they fell by 11.8% to Rs 106.17 crore in FY24 from Rs 120 crore in FY23. Employee benefits also saw a 2.8% cut to Rs 38.54 crore. On the other hand, the cost of materials rose by 12.5% to Rs 67.67 crore. The Powai-based company’s total expenses only slightly decreased by 4.8% YoY to Rs 287.33 crore in FY24.
The Mumbai-based company’s losses also saw a drop by 6.8% to Rs 85.41 crore in FY24 from Rs 91.6 crore in FY23. Its ROCE and EBITDA margins were -240.19% and -40.42%, respectively. On a per-unit basis, the company spent Rs 1.49 to generate a rupee of operating revenue in FY24.
The brand reported having Rs 32 crore in cash and bank balances and current assets of Rs 108.9 crore in FY24. mCaffeine has secured around Rs 337 crore in total funding and was last valued at Rs 1,000 crore. Amicus Capital is the largest investor with a stake of over 12%, followed by RPSG Ventures and Paragon Partners.
mCaffeine has been on the lookout for more funding for over a year but has not attracted new or existing investors. So, the company is now exploring the possibility of acquisitions due to its unsuccessful fundraising efforts.
Prominent competitor Wow Skin also saw a 9.5% drop in revenue during FY24, while Minimalist remained profitable, and posted a 90% growth in its scale to Rs 347 crore in FY24. Now a publically listed company, MamaEarth saw a drop in revenue in Q2 FY25.
