WoodenStreet revenue nears Rs 200 Cr in FY23; remains profitable

Omnichannel custom furniture platform WoodenStreet has maintained its growth trajectory, achieving over 50% year-on-year sales growth in recent years. Despite the consistent scale, the Jaipur-based firm remained profitable for the past four years.

WoodenStreet’s revenue from operations grew 48.1% to Rs 194 crore in FY23 from Rs 131 crore in FY22, its annual financial statements filed with the Registrar of Companies show.

Founded in 2015, WoodenStreet offers home solutions including solid-wood and modular furniture, kitchen and wardrobe, home decor, lighting, and furnishings. It currently operates with over 90 stores and caters to more than thirty thousand furnishing products.

The sale of furniture, furnishing, and decor items was the sole source of revenue for WoodenStreet. It also made Rs 3.54 crore from interest on deposits and investments, tallying the total revenue to Rs 198 crore during the fiscal year ended March 2023.

For the custom furniture platform, the cost of procurement of furniture, furnishing, and decor items accounted for 62.7% of the overall expenditure. In step with scale, this cost grew 46.4% to Rs 123 crore in FY23.

Its employee benefits, rent, advertising and promotion, bank charges, electricity, legal, and other overheads took the firm’s total expenditure up by 50.8% to Rs 196 crore in FY23 from Rs 130 crore in FY22.

Check TheKredible for the detailed expense breakup.

Expenses Breakdown

FY22

Total ₹ 130 Cr

FY23

Total ₹ 196 Cr

• Cost of materials consumed

• Employee benefit

• Rent

• Advertising promotional expenses

• Bank charges

• Electricity

• Others

To check complete Expense Breakdown visit thekredible.comView full data

The consistent expansion and controlled cost mechanism have helped WoodenStreet to book profits for the past four fiscal years. Its ROCE and EBITDA margin stood at 1% and 3.4% respectively. On a unit level, it spent Rs 1.01 to earn a rupee in FY23.

WoodenStreet has raised $34 million to date including its $30 million Series B round led by WestBridge. According to the startup data intelligence platform, TheKredible, Indian Angel Network (IAN) was the largest external stakeholder with 11.76% followed by Rajasthan Venture Capital Fund and WestBridge.

FY22-FY23

	FY22	FY23
EBITDA Margin	3%	3.4%
Expense/₹ of Op Revenue	₹0.99	₹1.01
ROCE	7%	1%

As of March 2023, WoodenStreet had current assets of Rs 126 crore including cash and bank balances of Rs 45.2 crore. As per Fintrackr’s estimates, its enterprise value to revenue multiple stood at 6X, which is decent when compared to its other VC-backed consumer-facing internet firms. 

The furniture business is challenging at many levels. Be it sourcing, designs, managing inventory and product degradation, sellers have usually slipped up at one or many of these. WoodenStreet has built some good street cred by managing a profitable journey so far. The obvious challenge is to grow to the next level, which would be Rs 500 crore plus,  without breaking the bank. With sales mostly in the NCR region for now, the online model comes with limitations, overcoming which, in the form of more warehouses, higher logistics costs, etc is expensive. All this, while carving out a niche that protects it from the looming presence of say, an Ikea, which will have a pan India presence by 2026 or thereabouts.