Farmley nears Rs 400 Cr revenue in FY25, losses under control

Farmley, a healthy snacking brand, reported a sharp improvement in its financial position during the fiscal year ended March 2025, a performance that later supported its $40 million fundraise at the start of FY26. The company’s operating revenue rose 71% during the year and moved close to the Rs 400 crore mark, while tighter cost control helped contain losses despite rapid expansion.

The company’s revenue from operations surged 71% to Rs 394 crore in FY25 from Rs 230 crore in FY24, according to its financial statements sourced from the Registrar of Companies (RoC).

Founded in 2017 by Akash Sharma and Abhishek Agarwal, Farmley offers snacks such as makhana-based munchies, date bites, seeds, trail mixes, and roasted nuts. The sale of healthy snacking products was the sole source of revenue for the company. Farmley’s total income grew to Rs 396 crore in FY25 from Rs 231 crore in FY24.

Looking at the expenses, cost of materials remained its largest expense which accounted for 67% of the total cost. To the tune of scale, this cost rose 57% to Rs 281 crore in FY25 from Rs 178.5 crore in FY24. Advertising and promotion cost doubled during the year to Rs 52 crore. Employee benefit expenses surged 69% to Rs 27 crore, while logistics expenses grew 54% to Rs 20 crore in FY25. 

Overall, Farmley’s total expenditure increased 63% to Rs 419 crore in FY25 from Rs 257 crore in FY24. For a more detailed expense breakup, refer to TheKredible.

With the company’s revenue growth outpacing expense growth, its net loss decreased by 15% to Rs 22.5 crore in FY25 from Rs 26.5 crore in FY24. Its ROCE and EBITDA margin improved to -51.56% and -3.68% respectively.

On a unit level, the company spent Rs 1.06 to earn a rupee of operating revenue in FY25, improving from Rs 1.12 spent in FY24. Its current assets were recorded at Rs 163 crore while cash and bank balances stood at Rs 22 crore in FY25.

According to TheKredible, the company has raised a total of $55 million of funding till date, including the $40 million raised in Series C round led by L Catterton. The company’s co-founders, Akash Sharma and Abhishek Agarwal together own 52% of the company.

The healthy snacking category, where startups like Farmley also count sale of dry fruits like almonds, cashew nuts etc, has been on a roll with rising incomes and awareness. Farmley has clearly cracked some key distribution deals with quick Commerce firms and more to ensure strong topline growth. But those usually come at the cost of margins, which is why the impact will be interesting to see in future results. The category remains competitive, and local kirana stores are also latching on to the fact that dry fruits have become mainstream, and started stocking and selling those directly. For all the discounting that is a permanent feature of snack sales in Ecom sites, local prices remain more than competitive without the baggage of marketing costs. Even wholesale hubs like Balli Maran in old Delhi have started taking smaller orders and delivering through options like Porter. We believe Farmley has some way to go yet before the firm can consider itself well placed in this evolving market.