Wonderchef: Premium Kitchenware Progress in FY25

Wonderchef, a leading brand in kitchenware and home appliances co-founded by Ravi Saxena and Chef Sanjeev Kapoor, has experienced a robust financial performance in FY25, showcasing improved profitability. Wonderchef’s operating revenue rose by 11% to Rs 421 crore in FY25, compared to Rs 378 crore in FY24, according to financial statements submitted to the Registrar of Companies (RoC).

Revenue and Product Range

Wonderchef provides a diverse selection of kitchen and home appliances, which include non-stick cookware, pans, chimneys, flasks, bakers, and more, available through omnichannel methods, e-commerce platforms, and quick commerce. The sale of these products served as the sole revenue source for the company.

Income and Expenses Overview

The company additionally generated Rs 2 crore from interest income, leading to a total income of Rs 423 crore in FY25, which was an increase from Rs 381 crore in FY24. The procurement costs for appliances emerged as the primary expense, accounting for 68% of the overall costs. This figure rose by 11.5% to Rs 281 crore in FY25, up from Rs 252 crore in FY24. Employee benefits climbed to Rs 35 crore, while costs related to transportation and contract manpower reached Rs 17 crore and Rs 10.6 crore, respectively. Advertising expenditure witnessed a 35% increase, amounting to Rs 23 crore. Overall expenses rose by 11% to Rs 415 crore in FY25, up from Rs 375 crore in FY24. For further details on expenses, various sources can be consulted.

Profit and Margins

With a steady revenue growth, Wonderchef’s profit surged to Rs 4.4 crore in FY25 from Rs 1.5 crore in FY24. The company also improved its Return on Capital Employed (ROCE) and EBITDA margin to 4.78% and 2.02%, respectively. On a per unit basis, the expense-to-revenue ratio remained consistent at Rs 0.99, unchanged from FY24.

Balance Sheet and Funding

On the balance sheet, Wonderchef reported Rs 23 crore in cash and bank balances, a decrease from Rs 33 crore the previous year, while its current assets stood at Rs 229 crore during the same timeframe. According to various sources, Wonderchef has successfully raised a total of $50 million in funding, with Sixth Sense Ventures and Amicus Capital Partners being notable lead investors. Co-founders Sanjeev Kapoor and Ravi Saxena together own 19.5% of the company.

IPO Plans and Future Outlook

Wonderchef is gearing up for its public market debut, targeting a valuation of approximately Rs 1,800 crore. The initial public offering (IPO) is expected to primarily be an offer for sale, providing existing investors a chance to exit, although the final issue size is still to be determined. Initially set for late 2025, the IPO may be postponed to 2026.

Market Challenges

Though the financial figures appear strong, it remains challenging for Wonderchef to significantly scale up in light of the prevailing competition. The company operates with an outsourced manufacturing model, relying on design and branding amid a highly competitive landscape, which may constrain profit margins. There is a belief that the firm could have been a suitable candidate for acquisition rather than pursuing an IPO, which might face disappointment in the long run if priced too aggressively. The current IPO market climate is more welcoming, potentially encouraging many otherwise normal firms to present themselves as rapidly growing, profitable entities, a narrative that often fades shortly after the IPO.

It is hoped that Wonderchef is not creating a similar situation for its investors.