The startup, backed by investors like Saama Capital and Sauce VC, reported a 78% widening in losses for the year to about Rs 8 crore.
In FY22, Mokobara had clocked about Rs 12 crore in operating revenue while incurring a loss of nearly Rs 4 crore.
Mokobara’s total expenses of about Rs 61 crore in FY23 is nearly three times higher than the Rs 16 crore it spent in FY22. The purchase of stock was the biggest expense component for Mokobara with Rs 29 crore spent in FY23 against Rs 17 crore in FY22.
ET reported on September 20 that the firm was in talks with venture investor Peak XV Partners (formerly Sequoia Capital India) for an expected investment of $12-15 million (Rs 99-124 crore) that could value the startup at $65-80 million (Rs 541-666 crore). It raised $3.6 million (Rs 29 crore) from existing investors like Sama Capital and Sauce VC in October.
During FY23, the company spent Rs 16 crore on digital marketing, up from Rs 5 crore in FY22.
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Mokobara was founded by former Urban Ladder executives Sangeet Agrawal and Naveen Parwal, and began operations in 2020. It is said to be on an annualised revenue run rate of Rs 140-150 crore, according to people briefed on its sale numbers.The omnichannel retailer runs multiple stores in Bengaluru, Delhi, Mumbai and Pune. In a press statement earlier this year, it said it would open 25 stores in one-and-half years.
The firm is taking on incumbents like American Tourister, VIP, and Safari in the luggage segment, though it is a relatively more premium in terms of pricing compared to the existing players.
In a February report, investment banking firm Merisis Advisors said the Indian luggage industry saw sales grow 50-70% in 2022 compared to the pre-pandemic period of 2019, which has been historically the best growth year for the sector.
This year, several direct to consumer (D2C) brands like Mokobara, with omnichannel operations, have raised funding from venture capital firms even amid a harsh funding winter. Once scaled, these firms have been backed by VC firms to take on large and established brands across a variety of sectors.
Some of these bets can end with good returns for investors. Consumer focused venture capital firm Fireside Ventures, the earliest institutional investor in D2C firm Mamaearth’s listed parent firm Honasa Consumer, raised Rs 258 crore from the initial public offering (IPO) this year alone, with unsold holdings worth Rs 821.49 crore left in the firm at the time. Fireside had invested Rs 29.1 crore in Honasa Consumer cumulatively.
Beyond this, pop culture-focused apparel startup The Souled Store raised Rs 135 crore in a funding round led by Xponentia Capital in March this year. In July, Freakins, a D2C apparel firm with a focus on denim, raised $4 million (around Rs 33 crore) in a funding round from Matrix Partners India and Blume Ventures, while footwear startup Solethreads raised $3.7 million (Rs 31 crore) from Fireside Ventures.