Just Dogs Reports Growth and Increased Losses for FY24

Just Dogs, a prominent player in the pet care retail and services sector, has announced a notable focus keyword of 30% year-on-year revenue growth for the fiscal year concluding in March 2024. Nonetheless, the Ahmedabad-based company has also experienced a considerable rise in losses as it continues its expansion efforts. According to financial records obtained from the Registrar of Companies (RoC), Just Dogs’ operational revenue surged by 32%, reaching Rs 94 crore in FY24, up from Rs 71 crore in FY23.

Company Overview and Market Presence

Founded in 2011, Just Dogs provides a variety of products such as dog food, supplements, accessories, and other pet-related offerings through its online platform. The startup is actively working on enhancing an all-encompassing online environment for pet owners, in addition to broadening its offline store network.

Revenue Streams

Just Dogs generates income from various product and service categories. Notably, pet food remains the company’s primary revenue source, contributing over 70% to the overall revenue, which increased by 47% to Rs 66 crore in FY24. Revenue from pet treats and grooming items also saw growth, reaching Rs 10 crore and Rs 2 crore, respectively. However, there was a decline in service revenue, which fell to Rs 16 crore compared to Rs 17.5 crore in FY23.

Expense Analysis

On the cost side, the company’s most significant expense category—material costs—rose by 37% to Rs 67 crore, accounting for nearly two-thirds of total expenses. Employee benefit costs increased significantly by 62.5% to Rs 13 crore, while marketing and rental costs both doubled, now standing at Rs 6 crore and Rs 10 crore, respectively. Other operational costs totalled Rs 10 crore in FY24.

Overall, expenses surged by 47%, amounting to Rs 106 crore in FY24 compared to Rs 72 crore in FY23. For a further breakdown of expenses, various sources may provide additional information.

Financial Performance and Current Assets

Despite the increase in revenue, Just Dogs faced a deeper financial loss, with figures rising to Rs 11 crore in FY24, compared to a minimal loss of Rs 6 lakh in FY23. The company’s return on capital employed (ROCE) and earnings before interest, taxes, depreciation, and amortization (EBITDA) margin were reported at -25.12% and -10.21%, respectively. On a unit basis, Just Dogs spent Rs 1.13 to generate a rupee of operating revenue in FY24, up from Rs 1.01 in FY23. The Ahmedabad-based enterprise reported current assets valued at Rs 43 crore in FY24, which includes Rs 8 crore in cash and bank holdings.

Investment and Competitive Landscape

Just Dogs has managed to raise a cumulative total of $7 million in funding so far, with Sixth Sense Ventures being the primary investor, owning a 23% stake in the firm. Co-founders Ashish Anthony and Poorvi Anthony collectively hold a substantial 77% stake, indicating potential for future fundraising endeavors.

In the competitive arena, Just Dogs faces challenges from several rivals, including Heads Up for Tails—a brand backed by Peak XV—and Supertails, which recently secured $15 million in funding led by RPSG Capital, along with other participants in the expanding pet care market.