Bewakoof: A D2C Fashion Brand’s Path to Recovery

Bewakoof, a direct-to-consumer (D2C) fashion and lifestyle brand, is striving to return to its pre-pandemic revenue levels. Owned by Aditya Birla, the company had previously surpassed Rs 200 crore in revenue in FY20. For FY25, Bewakoof reported revenues of Rs 173 crore while successfully reducing losses through strategic cost management.

Financial Performance Overview

Bewakoof’s operating revenue saw an increase of 7.5%, rising to Rs 173 crore in the fiscal year ending March 2025, up from Rs 161 crore in FY24. This data is based on financial statements submitted to the Registrar of Companies (RoC).

Product Offerings and Revenue Sources

As a lifestyle fashion brand, Bewakoof specialises in trendy products tailored for modern India, including t-shirts, phone covers, bags, and hoodies. This product range serves as the company’s primary revenue stream.

Sales and Return Rates

In FY25, Bewakoof achieved gross sales of Rs 264 crore, against which it recorded sales returns amounting to Rs 67 crore. This resulted in a return rate of approximately 25%, a significant improvement from the roughly 30% return rate in FY24. This advancement indicates enhanced product acceptance among customers along with better inventory management.

Cost Management Strategies

The primary expense for the company was the procurement cost of products, which remained stable at Rs 87 crore, accounting for 35% of total expenditures. Importantly, employee benefit costs decreased by 39.5%, landing at Rs 26 crore in FY25. Advertising costs saw a minor increase of 4% to reach Rs 49 crore, while transportation and handling expenses rose by 13% to Rs 35 crore.

Total Costs and Losses

Overall, total costs fell by 6.4% to Rs 248 crore in FY25, down from Rs 265 crore in FY24. With careful spending, Bewakoof’s losses diminished by 29%, amounting to Rs 73 crore in FY25 compared to Rs 103 crore in FY24. The Return on Capital Employed (ROCE) and EBITDA margin were recorded at -97.10% and -35.26%, respectively.

Unit Economics

On a per-unit basis, Bewakoof spent Rs 1.43 to generate one rupee of revenue in FY25, an improvement from Rs 1.65 the previous year. In terms of assets, the company had current assets valued at Rs 85 crore, including cash and bank balances of Rs 18 lacs and an inventory worth Rs 61 crore in FY25.

Ownership Structure

Bewakoof is primarily owned by Aditya Birla Digital Fashion Ventures, holding an 86% stake in the company. The founder and CEO, Prabhkiran Singh, possesses a 12.5% ownership interest, as reported by various sources.