Highlights
Mosaic Wellness Records Impressive Growth
Mosaic Wellness, the parent company of Man Matters, Boywise, and Little Joys, has achieved over 61% year-on-year growth in its operational scale, surpassing the Rs 300 crore revenue mark in the last fiscal year. Notably, the company has also managed to reduce its losses by 37% in FY24.
Financial Highlights
According to consolidated annual financial statements obtained from the Registrar of Companies, Mosaic Wellness saw its revenue from operations rise to Rs 333 crore in FY24, up from Rs 206 crore in FY23.
Company Overview
Mosaic Wellness, established in 2020 by Revant Bhate and Dhyanesh Shah, is a digital-first consumer health platform that operates three distinct brands catering to men, women, and children. Its leading brand, Man Matters, provides solutions across various areas including:
- Dermatology
- Sexual health
- Hygiene
- Nutrition
Revenue Streams
While the company has not publicly disclosed individual revenues for its three brands, the primary source of income for Mosaic Wellness in FY24 was the sale of health and wellness products. Additionally, the company earned Rs 8 crore from interest on deposits and gains from investments, resulting in a total revenue of Rs 342 crore for FY24.
Expense Management
Mosaic Wellness faced increased advertising costs, which rose to Rs 138 crore in FY24, reflecting a 38% year-on-year increase. Other significant expenditures included:
- Costs of procurement grew by 52% to Rs 93 crore
- Employee benefits increased by 33% to Rs 52 crore
- Total expenses reached Rs 380 crore in FY24, up by 38%, due to factors such as commission paid to agents, secondary packaging, freight, legal costs, and other overheads
Losses and Performance Metrics
Despite a revenue increase of over 60%, the digital health and wellness consultation startup effectively curtailed losses by 37% to Rs 39 crore in FY24, compared to Rs 62 crore in FY23. Additionally, metrics improved as follows:
- Return on Capital Employed (ROCE): -24.2%
- EBITDA Margin: -10.8%
- Expense-to-Earning Ratio: Rs 1.14
As of the end of FY24, Mosaic Wellness reported total current assets of Rs 188 crore, which included Rs 61 crore in cash and bank balances.
Funding and Future Prospects
Mosaic Wellness has successfully raised over $35 million to date, which includes a $24 million investment in the Series A round led by Peak XV, along with participation from existing investors like Elevation Capital and Matrix Partners India. The company is currently exploring opportunities for a new funding round. According to data from a startup intelligence platform, Elevation Capital holds the largest external stake, followed by Peak XV and Matrix.
Market Position
The market has recently been invigorated by HUL’s acquisition of Minimalist, leading to a keen focus on companies that have achieved significant scale (with a threshold of at least Rs 300 crore) and profitability. Mosaic Wellness’s ability to surpass this initial revenue threshold is commendable, and the income from deposits suggests sufficient operational runway as it seeks further investment. The Minimalist acquisition has set a valuation benchmark of 5-6X of sales, a figure that may not fully excite all market players. Investors are likely anticipating that Mosaic Wellness will double its revenue within two years and become profitable, strengthening its position in a competitive landscape where firms capable of meeting such valuations are becoming increasingly scarce. The generated profits will provide the company with options for an extended wait or to explore an initial public offering (IPO) if deemed necessary.