Smytten’s Revenue Decline and Cost Control Initiatives in FY25

Smytten, a platform for product discovery and trials, faced a revenue decline but improved its expense management, leading to a notable reduction in losses. The company’s revenue from operations fell by 10.5%, reaching Rs 111 crore in FY25 compared to Rs 124 crore in FY24, as per its provisional financial statements sourced from the Registrar of Companies (RoC).

The primary source of Smytten’s income comes from product trials and related services for D2C and FMCG brands. Additionally, it earns supplementary revenue through brand promotions and partnerships. However, the provisional financial statements did not disclose a breakdown of revenue sources.

Expense Management and Cost Reduction

On the expense side, the firm’s largest expenditure, the cost of materials, decreased by 17%, amounting to Rs 58 crore in FY25, down from Rs 70 crore in FY24. Employee benefit expenses were also reduced by 9% to Rs 20 crore. Details regarding other overheads, such as marketing, technology, and operational expenses, were not made available.

Overall, Smytten successfully reduced its total expenses by 21%, bringing them down to Rs 131 crore in FY25 from Rs 165 crore in FY24. This enhanced cost control played a significant role in achieving a 41% decrease in losses, from Rs 40 crore in FY24 to Rs 23.5 crore in FY25. The company’s ROCE and EBITDA margins were reported at -76.92% and -16.92%, respectively. On a per-unit basis, Smytten incurred costs of Rs 1.18 for every rupee earned in revenue during the last fiscal year.

Current Asset Position and Funding

As of March 2025, the Bengaluru-based firm reported current assets totalling Rs 67 crore, which included cash and bank balances of Rs 20 crore. According to available data, Smytten has secured a total of $22 million in funding to date, with Roots Ventures and Fireside Ventures being the lead investors. The co-founders, Siddhartha Nangia and Swagta Sarangi, hold a combined ownership of 39.32% in the company.