EatClub Brands crosses Rs 210 Cr mark in FY22, marketing cost soars 6X
After experiencing a 30% reduction in scale in FY21, EatClub Brands (previously Box8) has managed a twofold growth in FY22 while also crossing the Rs 210 crore mark.
According to its annual financial statements filed with the Registrar of Companies, EatClub’s revenue from operations increased by 96.3% to Rs 210 crore in FY22 from Rs 107 crore in FY21 (RoC)
EatClub is in charge of nine brands, including Mojo pizza, Zaza biryani, Bhatti chicken wings, Globo ice cream, Box8, and NH1 bowls. These brands accounted for 98.6% of total collections, which increased by 93.5% to Rs 207 crore in FY22 from Rs 107 crore in FY21.
The remaining revenue for the Bengaluru-based company came from membership fees from customers’ EatClub Pro subscriptions. During FY22, this income was recorded at Rs 3 crore.
In line with its size, the cost of procurement increased 107% and became EatClub’s largest cost center, accounting for 32% of total expenses. This cost was Rs 83 crore in FY22, up from Rs 40 crore the previous fiscal year (FY21).
Employee benefit costs at EatClub increased 72.4% to Rs 50 crore in FY22 from Rs 29 crore in FY21. With the expansion of influencer marketing and the addition of actors Raj Kumar Rao and Sara Ali Khan as brand ambassadors, its advertising costs more than doubled to Rs 28 crore in FY22, up from Rs 4.5 crore in FY22.
The company added another Rs 28 crore in contract labor charges, increasing the company’s overall cost by 103.9% to Rs 259 crore in FY22 from Rs 127 crore in FY21.
Meanwhile, its losses more than doubled to Rs 45 crore in FY22, up from Rs 18 crore in FY21. A single unit of operating revenue cost the Tiger Global-led company Rs 1.23.
EatClub competes directly with Rebel Foods, which grew 116% and surpassed Rs 900 crore in revenue in FY22. In the same period, Rebel’s losses increased by 55% to Rs 564 crore. Curefoods, another direct competitor, has yet to file its FY22 results.
EatClub, which began as Box8 over a decade ago, was a pioneer in the cloud kitchen space. With online food ordering on the rise in India, cloud kitchen companies are benefiting, as evidenced by the company’s growth. And, despite having a much larger scale than its competitor Rebel Foods, EatClub has managed to keep its losses under control.
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