Mensa Brands, the house of brands unicorn founded by former Myntra CEO Ananth Narayanan, has demonstrated significant financial improvement in FY24, with consolidated net losses narrowing by 31% to INR 155.85 crore from INR 227.03 crore in the previous fiscal year. This development marks a notable milestone for the company, which has established a strong presence in Tamil Nadu’s e-commerce landscape.
The company’s operating revenue witnessed an 11.6% increase, reaching INR 557.66 crore in FY24, up from INR 499.63 crore in FY23. Including other income of INR 40.53 crore, Mensa’s total income stood at INR 598.20 crore for the fiscal year.
“Our focus on operational efficiency and strategic growth has begun to show results,” said Ananth Narayanan, Founder and CEO of Mensa Brands. “The significant reduction in losses while maintaining healthy revenue growth demonstrates the strength of our business model and sets the stage for our next phase of expansion.”
The company’s improved financial performance comes from a combination of revenue growth and strategic cost management. Mensa Brands successfully reduced its total expenses by 7% to INR 712.60 crore in FY24, down from INR 763.22 crore in the previous year. This was achieved despite a 26% increase in stock-in-trade purchases to INR 208.24 crore and a 35% rise in employee expenses to INR 123.60 crore.
Notably, the company made significant cuts to its advertising expenditure, reducing it by 38% to INR 29.81 crore from INR 18.43 crore in FY23, reflecting a more focused approach to marketing spending.
V. Shankar, a Chennai-based e-commerce analyst, commented, “Mensa’s performance indicates a maturing business model in the house of brands space. Their success could pave the way for more Tamil Nadu startups to explore the D2C aggregator model, particularly given the state’s strong manufacturing and retail heritage.”
The company’s portfolio includes successful brands such as Pebble, MyFitness, and Dennis Lingo, with MyFitness reportedly achieving EBITDA profitability in the fiscal year with revenue between INR 200-225 crore. This success has particular significance for Tamil Nadu’s startup ecosystem, as it demonstrates the viability of building and scaling D2C brands from the region.
Looking ahead, Mensa Brands is reportedly preparing for an initial public offering (IPO) and is in the process of shifting its domicile from Singapore to India. The company, which has raised approximately $300 million from investors including Accel Partners, Prosus, and Tiger Global, represents one of the most significant success stories in the Indian D2C space.
