Direct to Consumer (D2C) tech accessories and lifestyle brand DailyObjects has registered two-fold growth in its scale during the last fiscal year. The company also claimed to remain profitable on the back of low consumer acquisition cost.
DailyObjects’s revenue from operations grew 2.1X to Rs 85 crore, Pankaj Garg, founder and chief executive of DailyObjects told Entrackr in an interview.
DailyObjects is a lifestyle accessories brand that caters to a range of products including bags, wallets, charging solutions, stationery, and other accessories.
According to Garg, the company sells 65% of its products from its own website and mobile app while the rest of its sales originates from marketplaces such as Amazon, Myntra, and Flipkart.
“We have an average order value of Rs 2,000 with a 47% repeat customer rate whereas our gross margin stood around 56% during FY23,” he said.
When it comes to cost bifurcation, product costs formed 43% of the total collection while marketplace commissions eat up 14% of the revenue, said Garg. “Our marketing and distribution consumed 13% and 7% of the revenue during FY23,” Garg added.
Garg claims that DailyObjects’s average customer acquisition cost stood at around Rs 425 which was roughly one-fifth of its average order value. While the company didn’t disclose the exact bottomline, it has managed a 100% year-on-year growth and maintained EBITDA in the green with limited funds in FY23. DailyObjects EBITDA stood at 5% during FY22.
DailyObjects raised about Rs 20 crore to date including its last round of $2 million from Roots Ventures in February 2022.
According to the company, lifestyle essentials in which DailyObjects deals in experiencing substantial growth, with a current estimated market size of $16.6 billion which is expected to grow to $23.4 billion in the next five years.
While the DailyObjects’ product portfolio makes it a one-of-its-kind brand with wide ranging designer goods for everyday utilities. It competes with brands such as Spigen for tech accessories, and Herschel Supply for bags to name a few.
For the decade-plus-old firm that was founded in 2012, DailyObjects has done well to survive the many ups and downs since it started. A slow starter that found its feet in the business after starting with mostly mobile phone covers, the firm has hit the high gear in the past few years after its initial 5 years when the focus was on making a case for its own model. The firm has been conservative with spends, and offers a broad portfolio of products today as it seeks to cross the Rs 120 crore level in 2023-24. Time spent in the market and being consistent has allowed it to build a degree of user loyalty and brand recognition, without burning the piles of cash that many others have used. That is a virtue that is only being appreciated now, and with a little luck, the firm could see some very good times ahead.
