Mensa Brands Reports Consolidated Net Loss Doubling to INR 227 Cr in FY23

• ByStartupStory     |    December 19, 2023

Mensa Brands, the house of brands unicorn founded by former Myntra CEO Ananth Narayanan, witnessed its consolidated net loss more than doubling to INR 227 Cr in the financial year 2022-23 (FY23) from INR 96.6 Cr in the previous fiscal year. The increase is attributed to higher cash burn, as the startup owns and operates various consumer brands, including Pebble, MyFitness, and Dennis Lingo.

Despite the loss, Mensa Brands saw a substantial surge in total operating revenue, rising over 137% to INR 499.6 Cr in FY23 from INR 210.4 Cr in the prior year. Of this, INR 386.2 Cr came from the sale of products. Additionally, the company earned INR 17.4 Cr from the sale of services and INR 96 Cr in other operating revenue in the form of shared service income. The overall total revenue, including non-operating income, reached INR 534.7 Cr in FY23, up from INR 217.9 Cr in the previous fiscal year.

Mensa Brands, backed by investors like Accel Partners, Prosus, and Tiger Global, raised over $200 Mn in equity. Its debt investors include Alteria Capital, InnoVen Capital, and Stride Ventures.

Breaking down the expenses, Mensa Brands reported a 142% increase in total expenses to INR 763.2 Cr during FY23. Notably, the startup spent around INR 1.5 to earn every rupee from operations on a unit economics basis. Key expense categories include the purchase of stock-in-trade, employee benefits, depreciation, advertising and promotional expenses, and miscellaneous expenses.

In FY23, Mensa Brands expanded its footprint by entering the UAE market and raised $40 Mn in debt from EvolutionX Debt Capital in October. The startup also acquired MensXP, iDiva, and Hypp from Times Internet and laid off around 30 employees from India Lifestyle Network (ILN) in May amid the ongoing funding challenges and a focus on improving bottom lines.

Follow Startup Story