Uppercase’s losses double in FY25; revenue grows 34%

Uppercase, a sustainable travel accessories and lifestyle brand, recorded steady growth in the last fiscal year ending March 31, FY25. However, its losses widened as expenses surged, led by higher material and marketing costs.

The company’s operating revenue grew 34% to Rs 83 crore in FY25 from Rs 62 crore in FY24, according to its financial statements filed with the Registrar of Companies (RoC).

Uppercase primarily sells eco-friendly trolleys, backpacks, and duffel bags which accounted for 98% of the operating revenue. The company also earned Rs 2 crore through gains from the sale of other investments and interest on bank deposits, bringing uppercase’s total income to Rs 85 crore in FY25.

Examining expenses, the company’s largest cost component, cost of materials, rose 36% to Rs 45 crore, accounting for nearly 38% of total expenditure. Marketing expenses also grew sharply by 44% to Rs 23 crore, forming 19% of the total.

Employee benefit costs increased 43% to Rs 20 crore, while selling and distribution expenses rose 56% to Rs 14 crore. Spending on outward and logistics went up 17% to Rs 7 crore. Overall, total costs jumped 45% to Rs 120 crore in FY25 as compared to Rs 83 crore in the previous year. For a more detailed expense breakdown, refer to TheKredible.

With Uppercase’s expense outpacing revenue growth, its losses  doubled to Rs 35 crore in FY25 from Rs 17.5 crore in FY24. The company’s EBITDA margin deteriorated to -43.01% from -31.10% during the period. While its ROCE stood at -63.68%, a slight improvement over -67.03% in the previous year.

On a unit level, the company spent Rs 1.45 to earn a rupee of revenue in FY25, compared to Rs 1.34 in FY24. Uppercase’s current assets rose to Rs 92 crore, including Rs 4 crore in cash and bank balances and inventory nearing Rs 10 crore in the same period.

According to TheKredible, Uppercase has raised a total of $17.5 million of funding till date, having Sixth Sense Ventures and Volrado Ventures as its lead investors which owns 26% and 16% of the company respectively.

The jump in selling expenses, including advertising is no surprise , considering the competitive intensity Uppercase faces across its segments. That is a share one would expect to see drop only beyond a certain topline figure that seems at  least a year or two away at current growth rates, indicating a need for the firm to go back to investors sooner than later to stay in the game and avoid panic.  Building truly strong brands remains a tough challenge in the baggage segment today, considering the clout of entrenched players, as well as competition from global brands when it comes to international travellers. At a mass level, the segment is close to being commodified, and Uppercase’s positioning as an eco-friendly option is one attempt to break away and target a more premium segment. Losses will continue to constrain the firm from any large scale campaigns, unless it gets lucky with a viral campaign or two.