Vaaree, a curated marketplace for home furnishings, decor, and accessories, recorded an impressive fourfold revenue growth in FY24, reaching Rs 8.84 crore compared to Rs 2.1 crore in FY23. However, the company faced a widening net loss, which expanded from Rs 3.5 crore in FY23 to Rs 16.38 crore in FY24, driven by rising expenses and a significant increase in advertising and employee benefit costs.
Over 81% of the company’s revenue in FY24 came from its operations, down from over 90% in FY23. Nearly 90% of this operational revenue was generated through service sales, while the remaining 10% came from product sales.
Founded in 2022 and headquartered in Bengaluru, Vaaree collaborates directly with certified manufacturers to provide high-quality home products at competitive prices. The platform offers a range of home furnishings, kitchenware, and bedding products, emphasizing authenticity and personal style.
The company has raised a total of Rs 58.45 crore across three funding rounds, with the latest round closing in May, 2024, as pre-Series A funding. Co-founders Garima Luthra and Pranav Arora hold a significant stake, with Garima Luthra owning 36.30% and ESOPs accounting for 6.83% of the shareholding.
Despite rapid revenue growth, Vaaree’s expenses surged by over 4.5x, rising from Rs 5.59 crore in FY23 to Rs 25.21 crore in FY24. Employee benefit costs accounted for 25.74% of total expenses in FY24, up from 19.14% in FY23. Depreciation costs stood at 0.29% in FY24.
The company’s EBITDA margin further deteriorated to -184.46% in FY24 from -165.87% in FY23. Additionally, ROCE plummeted to -89.83% in FY24 from -10.41% in FY23.