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Sanjeev Kapoor-backed Wonderchef turns profitable in FY24

Entrackr · 12m ago

Medial

Wonderchef, the kitchen appliance brand backed by celebrity chef Sanjeev Kapoor, is seeing consistent revenue growth year-on-year and recorded a profit in the fiscal year ending March 2024. Wonderchef’s revenue from operations increased by 20% to Rs 377.6 crore in FY24 from Rs 315.5 crore in FY23, according to its annual financial statement sourced from the Registrar of Companies (RoC). Wonderchef offers a wide range of kitchen and home appliances, including non-stick cookware, pans, chimneys, flasks, bakers, and more, through its omnichannel, e-commerce platforms, and quick commerce. The sale of products was the sole source of revenue for the Amicus Capital-backed company. The company earned an additional Rs 3.3 crore from interest income which pushed its total income to Rs 381 crore in FY24, compared to Rs 322 crore in FY23. For the kitchen and home appliances seller, the cost of procurement of appliances naturally becomes the largest cost center forming 67% of its overall cost. To the tune of scale, this cost increased by 25% to Rs 251.6 crore in FY24. Its advertising expenses saw a notable reduction of 25.44% to Rs 17 crore, reflecting the company’s shift towards more cost-effective promotional strategies. Employee benefit expenses also grew moderately by 12.3% to Rs 32 crore, while transportation costs rose by 8.3% to Rs 17 crore. Overall, its total expense increased by 16.7% to Rs 374.6 crore in FY24 from Rs 321 crore in FY23. The continued growth and controlled cost helped Wonderchef to record a net profit of Rs 1.5 crore in FY24, compared to a loss of Rs 52 crore in FY23. Its ROCE and EBITDA margin improved to 3.88% and 2% respectively. On a unit level, the company spent Re 0.99 to earn a rupee of operating revenue in FY24. It’s worth noting that Wonderchef's enterprise value to revenue multiple stood at 1.6X in FY24. The company had a current asset worth Rs 222.6 crore including Rs 33 crore of cash and bank balance in the previous fiscal. Wonderchef has secured a total funding of $50 million to date, including its last $20 million round led by Sixth Sense Ventures in 2021. According to the startup data intelligence platform TheKredible, Sixth Sense Ventures is the largest external stakeholder with 15.83% followed by Amicus Capital. Sanjeev Kapoor along with his wife Alyona Kapoor holds 19.57% of the company. Last year, Ravi Saxena, founder and CEO of Wonderchef, mentioned that the company is targeting around Rs 820 crore in revenue for FY25. Wonderchef has done well to find space in a crowded category with a combination of smart offerings and distribution. With the founders pushing 60 years now, the firm does face the challenge of maintaining growth, even as the market changes rapidly. From the growing misgivings around non-stick cookware to the rise of cast iron utensils, cookware firms have to skirt a tricky market in India. Eking out a profit has meant that the firm is definitely in play for an acquisition, especially if the funding situation deteriorates for it. That is something we would not discount at all now, despite the ambitious talk of more than doubling turnover in a year, one way to attract the attention of suitors, one might add.