Highlights
MakeO Reports Stable Revenue with Reduced Losses in FY24
MakeO, the parent company of Toothsi and the skincare brand Skinnsi, has demonstrated stability in revenue following impressive growth of over 100% in FY23. For the fiscal year ending March 2024, the company achieved a 32% reduction in losses.
According to the consolidated financial statements submitted to the Registrar of Companies, MakeO’s operational revenue slightly increased by 6.5%, reaching Rs 179 crore in FY24 compared to Rs 168 crore in FY23.
Company Overview
MakeO was established in 2018 by Arpi Mehta Shah, Pravin Shetty, Manjul Jain, and Anirudh Kal. It began as Toothsi, an aligner brand, and later consolidated its primary brands, including Skinnsi, to provide an extensive array of dental, skin, and hair treatment solutions.
Revenue Breakdown
- The sale of tooth aligners constituted 69.2% of the total operating revenue, which rose by 7% to Rs 124 crore in FY24.
- The remainder of the revenue came from Skinnsi’s skin makeover services, including:
- Laser hair reduction
- Hydra facials
- Anti-aging treatments
- Acne treatments
- Derma facials
- Sales of skincare products
Expenditure Overview
Consistently, employee benefits remained the most significant cost for MakeO, representing 36% of total expenditure, which reached Rs 119 crore in FY24. The company made notable reductions in consultant fees and marketing costs, decreasing by 57% and 24% respectively, resulting in costs of Rs 26 crore and Rs 69 crore in FY24.
The aggregation of software, payment gateway, rent, legal, travel, and other overhead expenses led to total costs being reduced to Rs 332 crore in FY24 from Rs 395 crore in FY23. A detailed breakdown of expenses can be found across various sources.
Financial Performance
Despite the modest growth, the trimming of consultant fees and marketing expenses enabled MakeO to reduce its losses by 31.8%, bringing them down to Rs 150 crore in FY24 from Rs 220 crore in FY23. The company’s Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin were recorded at -77.3% and -66.12% respectively, with an expense-to-earnings ratio of Rs 1.85. By the end of FY24, MakeO’s current assets stood at Rs 153 crore, comprising cash and bank balances of Rs 93 crore.
Investment and Stakeholders
To date, MakeO has successfully raised over $90 million, including a $16 million investment round led by 360 One Asset and Ashish Kacholia’s investment office. As reported by various data intelligence platforms, Eight Road Ventures is identified as the largest external stakeholder in MakeO, followed by Think Investment.