Mensa Brands, a prominent direct-to-consumer (D2C) company, reported a notable increase in losses, reaching Rs 329 crore in FY23, marking a 2.4 times surge from FY22. This spike in losses is attributed to a substantial rise in expenses during the fiscal year. According to Entrackr, citing financial statements from the company's group entity in Singapore, Mensa Brands also experienced a 55% boost in operating cash flow, reaching Rs 249.4 crore in FY23.
Despite the challenging financials, Mensa Brands demonstrated robust performance in terms of operating revenue, which climbed to Rs 1,317 crore in the fiscal year ending March 2023, a significant uptick from Rs 339.2 crore recorded in FY22. The report highlighted that a staggering 98.5% of the revenue, totaling Rs 1,297 crore, was generated through the sale of products from its portfolio firms. Additionally, Rs 17.7 crore was attributed to the sale of services. Notably, Mensa Brands posted an EBITDA of Rs -19.35 crore during FY23.
Founded by Ananth Narayanan, the former CEO of Myntra and Medlife, Mensa Brands enjoys backing from global investors such as Accel Partners, Falcon Edge Capital, Norwest Venture Partners, Prosus, and Tiger Global Management. The company achieved a net revenue run rate of Rs 1,500 crore within the first 12 months of its operations.
In a strategic move, Mensa Brands acquired the health-food startup MyFitness in September for an undisclosed sum. The acquisition aligns with Mensa Brands' vision to transform MyFitness into a Rs 1,000 crore brand within the next three to four years.
(With Agency Inputs)
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