The Ayurveda Experience crosses Rs 250 Cr revenue in FY23, eyes profitability
16-Nov-23 04:38:56
The Ayurveda Experience (TAE), a D2C skincare and nutrition brand, continued its growth momentum in the fiscal year ending in March 2023. The firm registered an impressive 84% growth in its scale while the losses dipped nearly 30% in FY23.
The Ayurveda Experience’s revenue from operations surged around 84% to Rs 259 crore in FY23 from Rs 141 crore in FY22, according to its consolidated financial statements filed with the Registrar of Companies.
The company offers Ayurveda-inspired skincare and wellness products, foods, beverages, and supplements on its own website and e-commerce platforms. The sale of products is the primary source of revenue for The Ayurveda Experience.
The company also claims to have a good presence in North America and Australia.
Advertising and promotion formed over 50% of the overall expenditure. This cost was elevated by 60% to Rs 143 crore in FY23 from Rs 90 crore in FY22.
Its procurement of materials, employee benefits, payment gateway charges, platform and soft cost, and other operating overheads took the total expenditure by 69.7% to Rs 280 crore in FY23 from Rs 165 crore in FY22.
The consistent growth in scale and controlled expenditure may help the company knock at profitability’s doors in the current fiscal. The firms’ losses declined 30% to Rs 17 crore in FY23 from Rs 24 crore in FY22. Its ROCE and EBITDA margin improved to -24% and -5% respectively.
On a unit level, it spent Rs 1.08 to earn a rupee in FY23.
The company raised over Rs 100 crore ($13 million) to date including the $6 million funding led by Anicut in last December. According to TheKredible, Fireside Ventures is the largest external stakeholder with 17.81% followed by Kalpavriksh Trust and Anicut Capital. Its founder and CEO Rishabh Chopra commands 30.4% of the company. Check TheKredible for the complete shareholding pattern.
The Ayurveda Experience, with its strong focus on export markets, can somewhat justify the higher brand spending on promotions. Margins in the business allow it that luxury, even as its own positioning as premium Ayurveda has helped it make a case for profits soon. With the focus on credibility and authenticity in the business in the wake of a slew of firms seeking the same market, TAE is well placed to rake in strong returns serving the NRI market as well as first time triers with its portfolio of products on offer.
SOURCE & CREDIT: ENTRACKR