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Pep Technologies cuts losses 81% in FY25; Hyphen drives growth, mCaffeine stalls

EntrackrEntrackr · 11d ago
Pep Technologies cuts losses 81% in FY25; Hyphen drives growth, mCaffeine stalls
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Fintrackr All Stories Pep Technologies cuts losses 81% in FY25; Hyphen drives growth, mCaffeine stalls mCaffeine’s parent reported 23% growth in FY25, along with an 81% reduction in losses. However, a closer look at its consolidated balance sheet indicates flat growth for mCaffeine. mCaffeine’s parent reported 23% year-on-year growth in the fiscal year ending March 2025, along with an 81% reduction in losses. However, a closer look at its consolidated balance sheet indicates flat growth for mCaffeine, while its other brand, Hyphen, grew over 6.5X and crossed the Rs 50 crore mark during the last fiscal year. Pep Technologies, the parent company, recorded a 23% increase in operating revenue to Rs 237.5 crore in FY25 from Rs 193 crore in FY24, according to its financial statements sourced from the RoC. While the firm did not disclose a brand-wise revenue breakdown, Hyphen’s operating entity, Kreative Beauty, reported Rs 50 crore in FY25. Excluding this, mCaffeine’s revenue remained largely flat at Rs 187.5 crore in FY25. The revenue break-up for mCaffeine could not be ascertained, as the company did not report standalone financial statements for the brand. mCaffeine offers caffeine-based skincare and haircare, while Hyphen focuses on clean, vegan skincare with multi-benefit products. Both brands sell online through marketplaces as well as their own platforms. Sale of its products was the sole source of operating revenue for Pep Technologies. The Powai-based company also earned Rs 1.5 crore from interest income that took its total income to Rs 239 crore in FY25. The firm’s largest expense head, advertising, declined by 13.5% to Rs 96 crore in FY25 from Rs 111 crore in FY24. This cost accounted for 38% of the total cost. Cost of materials increased by 6.5% to Rs 66 crore, while employee benefit expenses fell 29.9% to Rs 27 crore. Warehousing costs also decreased by 7.4% to Rs 31.5 crore while commission cost rose 22.2% to Rs 11 crore. Overall, mCaffeine reduced its total expenses by 13% to Rs 252 crore in FY25 from Rs 290 crore in FY24. The combination of revenue growth and tighter cost control helped the firm narrow its losses by 81% to Rs 18 crore in FY25 from Rs 93 crore in FY24. Its ROCE and EBITDA margin improved to -130.71% and -7.54% respectively. On a unit basis, Pep Technologies spent Rs 1.06 to earn a rupee during the fiscal year, compared to Rs 1.50 in FY24. The firm reported current assets of Rs 111 crore, including Rs 29.5 crore in cash and bank balances in FY25. mCaffeine’s parent Pep Technologies has raised nearly $50 million of funding till date, having Amicus Capital as the largest external shareholder, followed by RPSG Ventures and Paragon Partners. The contrast within the portfolio stands out. While mCaffeine appears to have reached a phase of limited growth, Hyphen is emerging as the key driver of momentum. This shift suggests a gradual rebalancing of focus within the company’s brand mix. For Pep Technologies, the challenge now is twofold: sustaining Hyphen’s trajectory while finding ways to revive growth in mCaffeine. Over time, capital allocation, marketing focus, and product innovation may increasingly tilt toward the faster-growing brand. The firm’s broader direction will likely depend on how effectively it manages this transition without diluting the identity or positioning of either brand.

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