Bold Care, the men’s sexual wellness startup co-founded by Bollywood actor Ranveer Singh, has announced a revenue of Rs 32.9 crore for FY24, reflecting a modest 6.67% increase from the previous fiscal. However, the company’s rising costs led to a significant increase in its losses.
Revenue Growth Amid Rising Costs
For the fiscal year ending March 2024, Bold Care posted a revenue from operations of Rs 32.9 crore, marking a steady rise from Rs 30.9 crore in FY23. The company’s primary market remains India, with overseas revenue contributing a mere Rs 30 lakhs to the total figure. Bold Care’s business model relies predominantly on direct-to-consumer (D2C) sales through e-commerce platforms and its website.
Despite this growth, the company faces mounting challenges in balancing its revenue with escalating operational expenses. Bold Care’s expenses reached Rs 53.9 crore during the fiscal year, significantly outpacing its revenue. The largest expenditure for the company was the cost of material, which decreased by 10.71% to Rs 15.09 crore. In contrast, advertising and promotional costs surged by 11.09%, totaling Rs 14.02 crore.
A Growing Concern: Rising Losses
While Bold Care’s top line saw growth, its bottom line presented a stark contrast. The company posted a loss of Rs 19.3 crore, a 21.46% increase from the previous fiscal year’s loss. The spike in losses was largely due to the company’s heightened spending on promotions and employee benefits. Employee benefit expenses rose by 38.36%, while legal and professional expenses climbed by 41.35%.
Additionally, discounts allowed by the company saw a sharp spike of 97.79%, amounting to Rs 2.69 crore. The rise in these costs, coupled with a narrowing operating margin, led to a negative return on capital employed (ROCE) of -40.8%, and an EBITDA margin of -11.71%.
Financial Snapshot: Cash and Receivables
Despite the losses, Bold Care managed to hold a cash and cash equivalent balance of Rs 13.57 crore, which provides some cushion for the company to navigate through its financial challenges. Receivables stood at Rs 4.86 crore at the end of FY24. This liquidity may help the company weather the ongoing cost pressures and continue its operations.
The company’s model, heavily reliant on e-commerce and direct-to-consumer sales, has allowed it to tap into a growing market for men’s wellness products, including oils, lubricants, and performance supplements. However, as seen from its financials, the heavy reliance on advertising and promotion to drive sales comes at a significant cost, one that has put pressure on the company’s bottom line.
Ranveer Singh’s Role in Bold Care’s Growth
In December 2023, Ranveer Singh joined Bold Care as a co-owner, investing an undisclosed amount in the company. Singh’s involvement brought significant attention to the brand, particularly in the male wellness space. However, despite the publicity boost, the company is still struggling to scale its operations efficiently.
The company’s founding team retains control, holding over 55% of the stake in the business, according to data from startup intelligence platform TheKredible. Bold Care’s plans to expand its offerings have also led to the recent launch of Bloom, a women’s wellness brand that marks the company’s first foray into the female wellness market. Bloom competes directly with established D2C brands like Man Matters and Beardo, which have made their mark in both the men’s and women’s wellness markets.
The Competitive Landscape
Bold Care is competing in a crowded and competitive space, with several direct-to-consumer wellness brands vying for market share. The company faces stiff competition from rivals like Man Matters and Beardo, who have been aggressively marketing their products through similar D2C strategies.
While the market for sexual wellness and personal care products is expected to grow, Bold Care’s struggle to balance its financials highlights the challenges faced by startups in the wellness sector. Rising advertising costs, high employee benefit expenses, and the heavy reliance on discounts are issues that Bold Care will need to address to maintain its trajectory of growth.
With the wellness market growing rapidly, the next few years will be crucial for Bold Care. As it continues to expand its product portfolio, the company will need to find a sustainable model that supports profitability and long-term growth.
