[Direct-To-Consumer Brand] Mamaearth’s Income Rises 6.5X to Rs 110 Cr in FY20
Backed by profitable social media campaigns and influencer marketing, D2C brand Mamaearth managed to grow its operating revenue 6.5X during the fiscal ended in March 2020 to nearly INR 110 crore from only INR 16.8 crore in FY19.
The Sequoia-backed startup earned another INR 2.23 crore through income from financial instruments during the same period.
Mamaearth leaned heavily on its marketing campaigns, and it was one of the biggest cost centres for the startup.
First reported by entrackr, the startup’s advertising & marketing expenses accounted for 39% of the total costs, surging 5.3X from INR 8.69 crore in FY19 to nearly INR 46 crore in FY20.
Started by Gazal Alagh and Varun Alagh in December 2016, Mamearth operates on minimal capital asset model and purchases all of its merchandise from external vendors.
The personal care D2C startup bought stock worth INR 50.55 crore during FY20, expanding 7.3X from purchases of only INR 6.93 crore made in FY19, with an inventory turnover of 14.57x.
Still in the growth stage, Mamaearth managed to minimise its losses relatively better than other growth-stage startups.
Mamaearth’s losses grew by 69% to INR 5.9 crore in FY20 from INR 3.5 crore during FY19. Its EBITDA margins have improved by 1392 BPS to -4.98% during FY20.
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