Mensa Brands, a prominent direct-to-consumer (D2C) company, witnessed a significant increase in its losses during the fiscal year ending March 2023, according to financial statements reported by its group entity in Singapore. The company, founded by Ananth Narayanan, former CEO of Myntra and Medlife, experienced a 2.4 times surge in losses, amounting to Rs 329 crore, compared to the previous fiscal year.

Financial Highlights

Losses and Expenses: Mensa Brands reported losses of Rs 329 crore in FY23, marking a substantial increase from the Rs 137.5 crore recorded in FY22. Rising expenses were cited as the primary factor contributing to the heightened losses.

Operating Cash Flow: The operating cash flow of Mensa Brands witnessed a notable increase of 55%, reaching Rs 249.4 crore in FY23.

Operating Revenue: The company’s operating revenue experienced a remarkable growth, reaching Rs 1,317 crore in FY23, compared to Rs 339.2 crore in the previous fiscal year.

Revenue Breakdown: Product sales from its portfolio firms constituted 98.5% of Mensa Brands’ revenue, amounting to Rs 1,297 crore. Rs 17.7 crore was generated from the sale of services.

EBITDA: Mensa Brands reported an EBITDA of Rs -19.35 crore during FY23.

Net Revenue Run Rate: The company achieved a net revenue run rate of Rs 1,500 crore in the first 12 months of its operations.

Investor Backing: Mensa Brands has garnered support from prominent global investors, including Accel Partners, Falcon Edge Capital, Norwest Venture Partners, Prosus, and Tiger Global Management. The backing from these investors has contributed to the company’s growth and strategic acquisitions.

Strategic Moves

In a notable move in September, Mensa Brands acquired the health-food startup MyFitness, signaling its expansion into diverse product categories. The acquisition, made for an undisclosed sum, aligns with Mensa Brands’ ambition to develop MyFitness into a Rs 1,000 crore brand within the next three to four years.

Despite the increased losses, Mensa Brands continues to make strategic investments, leveraging its D2C model to capitalize on evolving consumer preferences and market trends. The company’s financial performance underscores the competitive and dynamic nature of the D2C landscape, where balancing growth and managing expenses remains a key challenge for players in the space.

By Admin

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