Dairytech startup Country Delight’s net loss ballooned over 6.5X to INR 186.4 Cr in the financial year 2021-22 (FY22) from INR 28.2 Cr in the previous fiscal year due to a sharp increase in its expenses.
The Delhi NCR based startup’s revenue from operations rose 1.6X to INR 542.6 Cr in FY22 from INR 320.7 Cr in FY21.
Country Delight generates revenue from sale of milk and other products like curd, paneer (cottage cheese), ghee, eggs, fruits, vegetables, and coconut water.
In FY22, it earned INR 367.8 Cr from sale of milk as against INR 251.8 Cr in FY21, while the sale of other products generated revenue of INR 171.3 Cr as against INR 68.2 Cr in the previous fiscal year.
Total income, including other income, rose 68% to INR 547.2 Cr in FY22 from INR 325.6 Cr in the previous year.
Meanwhile, total expenses more than doubled to INR 733.7 Cr from INR 353.9 Cr in FY21. At INR 288.2 Cr, cost of materials consumer accounted for the biggest chunk of expenses, rising 56.8% from INR 183.7 Cr in FY21.
The startup also spent heavily on promotion in FY22. Promotional expenses rose almost fivefold to INR 124.6 Cr from INR 25.3 Cr in FY21.
Employee benefit expenses grew 78.7% to INR 67.4 Cr from INR 37.7 Cr in FY21. Employee benefit expenses comprise employees salaries, PF contribution, and other employee welfare benefits.
An increase in employee welfare benefits is an indication of the increase in employee headcount. As per Linkedin, Country Delight has over 1,000 employees.
Founded in 2013 by Chakradhar Gade and Nitin Kaushal, Country Delight follows a subscription-based model where it sources milk from farmers and delivers it to customers’ doorsteps. It also supplies bread, ghee, other dairy products, fruits and vegetables.
The startup has raised over $158 Mn till date and was last valued at over $600 Mn. It counts Orios Venture Partners, Elevation Capital, and Temasek among its investors.
Country Delight competes with Odisha-based Milk Mantra. Milk Mantra’s revenue grew 48% to INR 271 Cr in FY22 from INR 182 Cr in FY21, while its profit dropped 36% to INR 13.6 Cr from INR 21.3 Cr in FY21.
Besides, Country Delight also competes against Reliance Retail-acquired Milk Basket, which is likely to see the exit of over 100 employees as it integrates with JioMart.
The post Country Delight’s FY22 Loss Surges Over 6X To INR 186 Cr appeared first on Inc42 Media.
