Wakefit Slips Into Losses After Crossing Rs 400 Cr in Revenue

Wakefit is among the few startups in the growth stage that has surpassed $400 crore in revenue within five years of its debut. The sleep-related furniture business has seen a 2.07X increase in operating revenue to 408.59 crores over the course of the fiscal year, compared to 197.44 crores for FY20 - Wakefit's financial statements for the year indicated.

Wakefit has generated 94.74 percent of its revenue by selling manufactured mattresses, pillows, and other accessories that jumped 2.07X to 387.1 million in FY21, up from the previous year's 187.16 million in the previous financial period (FY20).

The sale of tradable products, including pillows, neck pillows, pillow protectors and study chairs, and comforters and cushions, has increased by 55% to 11.95 crores for FY21, up from the figure of 7.69 crores in FY20. The revenue from the sale of services stood at 4.51 crore in the previous fiscal year. This was the same as in FY20. Scrap sales have also added some money to the company's bank accounts during the fiscal year that ended in March 2021. In line with earnings, the costs of the firm increased 2.47X to 454.22 crore for FY21, contrasted to 184.22 million in FY20.

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Since the revenue grew by more than two times, the main expense of the mattress production firm is the cost of materials. It accounted for 54% of total expenditures in FY21. The cost increased 2.52X to the amount of Rs 245.23 crore for FY21, up from the Rs 97.32 crores in FY20. 

Benefits for employees are the second most significant expense for Wakefit, which accounts for 12.71 percent of the total expense in FY21. This expense grew 3.42X to 57.75 million in FY21 compared to the amount of 16.88 million in FY20. Of the total benefits for employees accounted for, 7.1 crores are spent on ESOP-based payments. Wakefit slipped into losses after the rise of 2.47x in its total expenses. 

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Wakefit has shown an impressive increase in its revenue over FY21. The company has reached the mark of Rs 400 crore of operating profits with solid unit economics. And when we look at this in comparison to other startups that are similar in size, it's a huge improvement. If the company continues to gain momentum, it shouldn't be a surprise to any person to witness Wakefit become a unicorn in the second quarter of this year, especially considering that the company's last fundraising in November 2021 was with a price of 2800 crore. The only thing holding it back is the intense competition in the space and the traditional players who are trying to get better against the fast-growing startups.

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SharkTank's Ashneer Grover Demands Rs.4000 Crore to Leave His Company BharatPe

Shark Tank Shark Tank's Indian host Ashneer Grover landed in controversy in the last month after an audiotape of him where he's accused of threatening and hurling abuse at the Kotak Mahindra Bank employee, was released. Ashneer has denied all allegations and said the company he works for will be BharatPe in exchange for investors giving him the sum of Rs4,000 crore.

After the release of the audiotape in the last one month ago, Ashneer declared it to be fake audio recorded by a fraudster seeking to steal money." The statement that was made in a tweet that was later removed by Ashneer. Now, legal actions are being taken by Kotak Mahindra Bank against Ashneer for “inappropriate language” used against their employees.

In a recent conversation with Money Control, Ashneer has stated that he will quit his employer only after an individual investor purchases out his 9.5 percent stake in the company.

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Ashneer stated, I am the MD and I run the company. If the board decides that I'm not needed to be the MD, and somebody else should be the CEO of the business, then please place my Rs 4,000 crore on the market and get the keys off my hands. If you're looking to purchase me, you would like to purchase me at the fair market value you think it is, right? According to me, a fair value would be about $6 billion.

After the alleged audio making rounds on the internet, Ashneer is on a voluntary leave from his duties on BharatPe until March-end. Similarly, last week, Ashneer’s wife - Madhuri Grover - also went on a voluntary leave for a vacation.

About Ashneer Grover

Ashneer, an IIM alumni, worked as an executive vice president at Kotak Mahindra Bank, after which Ashneer was hired by American Express. Later, Ashneer went on to co-found both Grofers and BharatPe.

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About BharatPe

BharatPe is an Indian fintech firm that caters to small-sized merchants and owners of kirana stores in India. It offers a wide range of fintech solutions, including interoperable QR codes to facilitate UPI transactions, Bharat Swipe for card acceptance, as well as small business financing. BharatPe’s revenue for fiscal 2021 jumps over six times to Rs 700 crore. BharatPe’s valuation was $3 billion last year when it raised $370 million from Tiger Global, Coatue and others. BharatPe’s net worth today is around $6 billion.

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