Mother care brand Mamaearth registers four fold growth, turns profitable
- ByTejika Bajaj | January 10, 2022
Baby and mother care brand Mamaearth has registered a four fold growth in its revenue, as per the financials submitted by the startup to the regulatory authorities.
As per the company financials for FY21, Mamaearth has reported operating revenue for INR 461 crore as against INR 109.8 crore for FY20. The firm has garnered 98% of its revenue from domestic sales while its global sales formed the remaining part and have subsequently seen a 9.5X growth during FY21. The rise in sales complemented by increased operational efficiency has resulted in massive growth in the revenue figure.
Furthermore, the unicorn has observed a post tax profit worth INR 24.6 crore in FY21 as against the loss of INR 5.92 crore during FY20. This thereby makes the firm profitable for the first time since its inception.
Unlike most unicorns which register a significant share of expenses to employee benefit costs, Mamaearth registered a megre 6.4% of its annual costs to the same. On the contrary, the startup observed the most significant contribution to the annual cost by the marketing cost which stood at 44.1% of the annual cost.
Overall, Mamaearth’s annual costs ballooned 3.7X to Rs 435.6 crore in FY21 from nearly Rs 118 crore during FY20. On a unit level, it spent Rs 0.95 to earn a single rupee of operating revenue in FY21. EBITDA margins also improved from nearly -5% in FY20 to 6.5% during FY21.
Despite the adversities brought forth by the pandemic which have had a considerable impact on the financials of various companies, Mamaearth has been able to stride at a scorching pace and cross INR 460 crores in sales.
The first entrant to the unicorn club this year, Mamaearth has been named as one of the most successful D2C brands in India which has been able to set itself apart from other unicorns due to its ability to churn profits.
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