E-commerce enabler Smytten scaled 2.4X and neared Rs 60 crore in revenue during FY22. However, the losses for the Fireside Ventures-backed startup remained a big hurdle as it jumped over 7X in the last reported fiscal year.
Smytten hosts more than 1,200 brand partners spanning various lifestyle genres, including fragrances, beauty, grooming, baby and mother care, health, and more. The platform enables consumers to access product samples from these categories to help them make the right purchase decisions.
The company collects a fixed charge for handling and shipment-related service against the sample products sold free to customers. This income grew 63.9% to Rs 26.37 crore in FY22. While the sale of products from the platform registered at Rs 20.36 crore in FY22.
Commission and advertisement are two other revenue drivers which grew 63% and 31% to Rs 6.26 crore and Rs 6.2 crore respectively in FY22.
On the cost side, the procurement of sample products formed 36.5% of the total expenditure which surged 3.85X to Rs 31.5 crore in FY22. Smyteen’s spent on advertisement and marketing mounted 3.1X to Rs 23.7 crore in FY22.
Its employee benefits and Feight & forwards charges zoomed 2X to Rs 6.37 crore and 12.3 crore respectively, pushing its overall expenditure to Rs 86.3 crore in FY22 from Rs 28.4 crore in FY21.
With over 3X growth in the total cost, Smytten’s losses spiked over 7X to Rs 25.7 crore in FY22. Its ROCE and EBITDA margin worsened to -45.56% and -41.39% in FY22. It spent Rs 1.45 to earn a unit of operating revenue.