Setting a trend among fitness enthusiasts through a combination of smart wearable products and remote personal trainers, GOQii is counted among well-known global brands in its space like Apple, Samsung, Fitbit and Xiaomi.
While other homegrown startups in this space have almost failed to make a dent, the Vishal Gondal-led firm has been fighting a lone war against the established players.
The Mumbai-based company had recently revealed its plans to go omnichannel for the next phase of growth. Amidst expansion and the launch of new products, the five-year-old startup has revealed its annual financial statement with an increase in revenue and expenditure.
According to GOQii’s annual financial statement for the year ending March 31, 2019, the company’s total revenue has recorded a 90.6% jump to Rs 21.79 crore.
Out of the total revenue, operational revenue was recorded at Rs 21.35 crore, which includes the sale of wellness coaching services, software development services, marketplace commission, sale of traded goods, and commission on diagnostic services.
Notably, GOQii has generated much of its revenue from the sale of wellness coaching services amounting to Rs 12.29 crore.
On the expenditure front, GOQii saw a 58.8% surge during the last fiscal, which amounted to Rs 49.33 crore, up from Rs 31.06 crore in FY18. As total cash burn, the company spent on various components, including employee benefit, legal & professional fees, marketplace charges, and others.
Its employee benefit expense increased by 20.67% to Rs 12.90 crore from Rs 10.69 crore in FY18. Besides, the company spent heavily (5.2 times more than previous fiscal) on advertising, marketing & promotion this year, which stood at Rs 9.46 crore.
In all, to generate operating revenue of Rs 21.35 crore in FY19, GOQii spent Rs 49.33 crore, which resulted in a loss of Rs 27.54 crore. In comparison, net losses have surged 40.2% in FY19 from 19.63 crore in FY18.
Given that GOQii has a robust plan for the omnichannel model to amplify reach to 10,000 stores in next one year, the company’s revenue and expenses are expected to grow significantly.
Besides, GOQii is also planning to launch new insurance-related products by early next year. It’s working on a project named Ayushman India in partnership with Bajaj Allianz General Insurance.
With $50 million in risk capital from the likes of Galaxy Digital, Denlow Investment Trust, DSG Consumer Partners and Cheetah Mobile, GOQii now offers a gamut of fitness products under its wearable fitness band and sells them via its own platform and marketplaces – Flipkart and Amazon. It also has offline presence through the Tata-owned retail chain Croma.