Hyderabad based sustainable footwear startup Neeman’s saw its top line scaling over 48% to Rs 69.5 crore in the fiscal year ending March 2023. While a majority of this was contributed by operations, the sale of fabric pitched in more than 55%, while a little more than 44% came in from the sale of open and close footwear.
Previously, in FY22, it had an operating revenue of over 98% with the sale of fabric bringing in more than 19% and the sale of open and close footwear contributing a majority of over 80%.
Founded by Taran Chhabra, Neeman’s is a D2C sustainable footwear startup that produces footwear from Merino wool, organic cotton, recycled PET bottles and recycled tires.
It mainly generates revenue from its website as well as aggregators like Amazon, Flipkart and Myntra.
The footwear e-commerce firm’s expenses spiked 43% to Rs 103.45 crore in FY23 as compared to FY22’s Rs 72 crore.
While the cost of materials procured contributed about 40% to the overall, advertisement and promotional costs and transportation charges pitched in a little over 30% and close to 9% respectively.
The six-year-old startup last secured its Series B funding round in 2022. The round raised about Rs 40 crore led by Sixth Sense Ventures.
While the leading investor held over 40% of the company’s shares, the founder Taranjeet Singh Chhabra owned close to 20% and Anicut Capital had about 17%.
A year prior to this, it secured a debt round of Rs 7 crore from Stride Ventures.
Neeman’s losses widened 35% to Rs 34 crore in FY23 as compared to the preceding fiscal year’s Rs 25 crore. Its current EBITDA margin and ROCE stand at -46.07% and -113.15% respectively.