Wakefit records Rs 813 Cr revenue in FY23; losses go up

Expenses Breakdown

• Cost of material consumed

• Employee benefit expense

• Cost transportation

• Legal professional charges

• Advertising promotional expenses

• Othes

To check complete Expense Breakdown visit thekredible.comView full data

When it comes to bottomline, Wakefit’s losses jumped by 36.4% to Rs 146 crore in FY23 from Rs 107 crore in FY22. Its ROCE and EBITDA margin stood at -21% and -10% respectively. On a unit level, it spent Rs 1.19 to earn a rupee.

At the end of FY23, Wakefit had a cash reserve of Rs 174 crore while the other current assets including receivables and investments stood at Rs 212 crore.

The over $2.5 billion mattress and related markets in India have seen the kind of excitement in recent months that is guaranteed to lead to sleep deprivation for many in the sector. From Sheela Foam’s acquisition of Kurl On followed by the Rs 300 crore bet on furniture rental firm Furlenco, to Wakefit’s own aggressive moves to grab share, even as other incumbents and newcomers spruce up for the changing market, it’s all happening after seemingly decades of soporific growth. Wakefit will probably consider FY23 numbers a little behind its own expectations, going by the aggressive projections made last year.  

Even as it beats industry growth rates of 10% or so, it is increasingly, the only major player at scale that is making losses.  While its investors seem fine with that for now, they will know that profitability is hardly an arms length away, especially when or if biggies like IKEA, or even Amazon drop their own brands into the mix. That’s no longer speculation, and increasingly, the issues remains of when, not if. For Wakefit, that will mean doubling down on what it has done well so far, building a brand that is seen as modern, responsive and capable of being used across more segments beyond mattresses and pillows successfully.  Can that happen without lots of growth capital? The jury is out on that.