Wakefit Slips Into Losses After Crossing Rs 400 Cr in Revenue

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Wakefit Slips Into Losses After Crossing Rs 400
Cr in Revenue
Wakefit is among the few startups in the
growth stage that has surpassed 400 crore
in revenue within five years of its debut.
The sleep-related furniture business has
seen a 2.07X increase in operating revenue to
408.59 crores over the course of the fiscal year,
compared to 197.44 crores for FY20 - Wakefit's
financial statements for the year
indicated. Wakefit has generated 94.74 percent
of its revenue by selling manufactured
mattresses, pillows, and other accessories that
jumped 2.07X to 387.1 million in FY21, up
from the previous year's 187.16 million in
the previous financial period (FY20). The sale
of tradable products, including pillows, neck
pillows, pillow protectors and study chairs, and
comforters and cushions, has increased by 55 to
11.95 crores for FY21, up from the figure of 7.69
crores in FY20. The revenue from the sale of
services stood at 4.51 crore in the previous
fiscal year. This was the same as in FY20. Scrap
sales have also added some money to the company's
bank accounts during the fiscal year that ended
in March 2021. In line with earnings, the costs
of the firm increased 2.47X to 454.22 crore for
FY21, contrasted to 184.22 million in FY20. Also
read Ashneer Grover Demands Rs.4000 Crore to
Leave BharatPe Since the revenue grew by more
than two times, the main expense of the mattress
production firm is the cost of materials. It
accounted for 54 of total expenditures in FY21.
The cost increased 2.52X to the amount of Rs
245.23 crore for FY21, up from the Rs 97.32
crores in FY20.
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Benefits for employees are the second most
significant expense for Wakefit, which
accounts for 12.71 percent of the total
expense in FY21. This expense grew 3.42X
to 57.75 million in FY21 compared to the
amount of 16.88 million in FY20. Of the total
benefits for employees accounted for, 7.1 crores
are spent on ESOP-based payments. Wakefit slipped
into losses after the rise of 2.47x in its total
expenses. You may also like boAts Revenue
Exceeds Rs.1,500 Cr Wakefit has shown an
impressive increase in its revenue over FY21. The
company has reached the mark of Rs 400 crore
of operating profits with solid unit
economics. And when we look at this in
comparison to other startups that are
similar in size, it's a huge improvement.
If the company continues to gain momentum, it
shouldn't be a surprise to any person to witness
Wakefit become a unicorn in the second quarter of
this year, especially considering that the
company's last fundraising in November 2021
was with a price of 2800 crore. The only
thing holding it back is the intense
competition in the space and the
traditional players who are trying to get
better against the fast- growing
startups. Get all the latest startup news and
upcoming IPO news on Entrackr.