E-commerce roll-up platform Mensa Brands has acquired more than 20 companies specializing in fashion and home products so far. The integration of these brands has significantly contributed to Mensa’s growth which is evident from its scale which flourished over 2.3X to touch nearly Rs 5oo crore mark in the fiscal year ending March 23.
Operational revenue of the India entity of Mensa spiked to Rs 499.6 crore during FY23 as compared to Rs 210.5 crore in FY22, the company’s consolidated financial statements with the Registrar of Companies show.
The local entity of the Tiger Global-backed company generated Rs 534.7 crore revenue in the fiscal year ending March 2023 including the non-operating income (interest and gains on financial assets) of Rs 35 crore.
As per the company’s group entity’s financial statements in Singapore, it has generated Rs 1,317 crore operating revenue during the fiscal year ending March 2023. Fore more details, visit here.
Led by Ananth Narayanan, former CEO of Myntra and Medlife, Mensa Brands acquires direct-to-consumer (D2C) brands in three verticals (home, lifestyle, and beauty) with revenue between $1.5 million to $10 million. The Thrasio-inspired firm helps the acquired brands with process optimization, growth hacking, demand planning, expansion, and marketing.
On the lines of revenue, losses of the company also flew 135% to Rs 227 crore during FY23 against Rs 96.6 crore in FY22.
The hike in losses came on the back of rising expenses during the last fiscal year. Cost of materials of Mensa rose over 2X to Rs 214.7 crore in FY23 from Rs 99.27 crore in FY22.
Finance cost emerged as the second largest cost for Mensa which shot up 3X to Rs 97 crore during FY23 from Rs 33 crore in FY22. Employee benefits and promotional expenses for the three-year-old-firm mounted 3X and 3.3X, respectively, to Rs 91.55 crore and Rs 29.8 crore during FY23. At the end, its total cost grew 2.4X to Rs 763 crore in FY23 from Rs 315.4 crore in FY22.
When it comes on the ultimate holding company in Singapore, its losses jumped to Rs 540.62 crore during the last fiscal while operating cash flow went up 55% to Rs 249.4 crore in FY23.
The Tiger Global-backed company has booked Rs 211.5 crore worth changes in fair value of purchase consideration and put options into its expenses which are non-cash in nature.
It has raised more than $280 million to date from investors including Accel Partners, Norwest Venture Partners, Prosus Ventures and Tiger Global. Mensa directly competes with GlobalBees, Goat Brand Labs, Evenflow, UpScalio et al.