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mCaffeine’s Revenue Slips to ₹193 Crore in FY24 Amid Changing Market Dynamics

By
Supriya Biswas
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Personal care brand mCaffeine, known for its caffeinated beauty and skincare products, experienced steady revenue growth until FY23, scaling from ₹40 crore in FY20 to ₹205 crore in FY23. However, the brand’s trajectory shifted in FY24, with a 6% decline in revenue attributed to reduced sales of its signature products.

mCaffeine reported operational revenue of ₹193 crore in FY24, a drop from ₹205.3 crore in FY23, as per its financial filings with the Registrar of Companies (RoC). This dip contradicted earlier expectations, as co-founder and CEO Tarun Sharma had projected a 50% growth in sales for the fiscal year, aiming for profitability by FY25.

The Mumbai-based brand primarily operates through online platforms, including its website and e-commerce marketplaces. Revenue from product sales, its main source of income, dipped by 6%, while total income, bolstered by ₹8.9 crore in interest earnings, stood at ₹201.9 crore for FY24.

Expense Analysis

Advertising costs, a significant expenditure for mCaffeine, fell by 11.8% to ₹106.17 crore from ₹120 crore in FY23. Employee benefits also saw a slight decrease of 2.8%, amounting to ₹38.54 crore. However, raw material costs surged by 12.5%, reaching ₹67.67 crore. The company’s total expenses marginally decreased to ₹287.33 crore.

Despite its shrinking scale, mCaffeine managed to narrow its losses by 6.8%, reporting a net loss of ₹85.41 crore in FY24 compared to ₹91.6 crore in FY23. The company spent ₹1.49 to generate a rupee of revenue during the fiscal year, with its ROCE and EBITDA margin at -240.19% and -40.42%, respectively.

Financial Position and Market Challenges

mCaffeine held cash and bank balances of ₹32 crore and reported current assets of ₹108.9 crore in FY24. Backed by ₹337 crore in total funding, the brand was last valued at ₹1,000 crore, with Amicus Capital as its largest investor, holding a 12% stake, followed by RPSG Ventures and Paragon Partners.

Despite its valuation, mCaffeine has struggled to secure additional funding over the past year, reportedly pushing the company to consider acquisition opportunities. This challenge comes as competitors like Minimalist achieved a 90% growth to ₹347 crore with profitability, while others, such as Wow Skin, faced revenue declines.

Future Outlook

While mCaffeine’s cost-cutting efforts have provided some relief, the company continues to grapple with high advertising expenditures and a lack of flagship products to drive consistent growth. As the beauty industry evolves, mCaffeine will need to adapt its strategies to overcome these hurdles and regain momentum in the coming fiscal years.

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Sugar Cosmetics Reports Rs 505 Crore Revenue with Reduced Losses in FY24

By
Supriya Biswas
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Sugar Cosmetics, the direct-to-consumer (D2C) beauty brand, experienced a tempered growth of 20% in the fiscal year ending March 2024, following an impressive 90% surge in FY23. The brand successfully reduced its losses by 11.4%, signaling an effort to stabilize amidst a competitive market.

The company’s revenue from operations rose to Rs 505 crore in FY24, compared to Rs 420 crore in FY23, as per its financial statements filed with the Registrar of Companies (RoC). Sugar primarily generates income through the sale of cosmetics and beauty products, with export sales contributing Rs 2.5 crore. Additionally, it earned Rs 10 crore in interest income, bringing its total revenue to Rs 515 crore.

Advertising and promotional expenses remained Sugar’s largest expenditure category, unchanged from FY23, standing at Rs 162 crore. The cost of procuring materials increased by 21.1% to Rs 138 crore, reflecting the scaling of operations. Other operational costs—including employee benefits, rent, IT services, legal expenses, and packaging—contributed to a total expenditure of Rs 584 crore, marking a 15.6% rise from Rs 505 crore in FY23.

Despite the increased costs, the brand managed to reduce its losses to Rs 67.5 crore in FY24, down from Rs 76.2 crore in FY23. Sugar’s ROCE and EBITDA margins were recorded at -31.87% and -9.22%, respectively, with the company spending Rs 1.16 to earn a rupee in FY24. Its total current assets stood at Rs 302 crore, including Rs 54 crore in cash and bank balances.

Sugar Cosmetics has raised approximately $85 million to date, including a $50 million funding round led by L Catterton in 2022. Other prominent investors include A91 Partners and Elevation Capital. While Sugar was reportedly in discussions to secure $100 million at a valuation of $700-800 million during FY24, the deal did not materialize.

As the D2C sector faces challenges in achieving rapid topline growth, Sugar’s controlled losses are noteworthy. However, its slower revenue acceleration and consistent costs may present hurdles, particularly with the IPO landscape becoming more cautious. These factors, alongside intense market competition, underline the need for strategic innovations to ensure sustainable growth.

US Secures $6.6 Billion Investment to Boost Semiconductor Manufacturing with TSMC

By
Supriya Biswas
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0

The United States has finalized a deal to provide Taiwanese semiconductor giant TSMC with up to $6.6 billion in direct funding to establish cutting-edge manufacturing facilities on American soil. In addition to this significant funding, up to $5 billion in proposed loans has been allocated to support TSMC Arizona, officials confirmed on Friday.

The agreement, announced just ahead of a potential political transition, highlights the Biden administration’s commitment to bolstering domestic semiconductor production. President Joe Biden emphasized the transformative impact of the partnership, stating, “This historic agreement with TSMC, the global leader in advanced semiconductor manufacturing, will drive $65 billion in private investment to construct three state-of-the-art facilities in Arizona.”

The CHIPS Act, a landmark initiative under the Biden administration designed to rejuvenate the U.S. semiconductor industry, has facilitated over $36 billion in grants, including TSMC’s allocation. However, much of these funds remain in a due diligence phase, with disbursements contingent on milestone achievements.

Commerce Secretary Gina Raimondo highlighted the significance of the deal, noting the strategic importance of producing leading-edge chips domestically. “For the first time, we’ll manufacture advanced chips that power AI, quantum computing, and military systems here in the United States,” Raimondo stated, emphasizing the national security advantages.

The three TSMC facilities in Arizona are set to begin operations by early 2025. Once fully functional, these plants are projected to produce millions of high-performance chips annually, serving applications such as 5G/6G smartphones, autonomous vehicles, and AI-driven technologies. The venture is expected to generate 6,000 direct manufacturing jobs and reduce the U.S. reliance on foreign chipmakers.

Currently, TSMC produces most of its advanced chips in Taiwan. Early production at the Arizona facilities, however, has already achieved yields comparable to TSMC’s Taiwan operations, a promising indicator of success.

A senior U.S. official, speaking anonymously, revealed that at least $1 billion is expected to be disbursed to TSMC this year as part of the agreement. This partnership marks a pivotal step in revitalizing the U.S. semiconductor industry, which once accounted for 40% of global chip production but has since dwindled to around 10%, with no presence in manufacturing the most advanced chips.

By bringing leading-edge chip manufacturing back to the United States, this collaboration between the U.S. government and TSMC aims to strengthen economic and technological resilience for years to come.

Lallantop Adda 2024: A Grand Celebration of Hindi Culture, Entertainment, and Digital Trends

By
Supriya Biswas
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Mark your calendars for Lallantop Adda 2024, an extraordinary three-day festival celebrating the confluence of Hindi literature, cinema, and digital innovation. This much-anticipated event will take place from November 22 to 24 at Major Dhyan Chand National Stadium, New Delhi. Hosted by Lallantop, a trailblazing digital platform known for its engaging storytelling, the festival promises an unmatched blend of creativity, dialogue, and entertainment.

The lineup for Lallantop Adda 2024 is nothing short of spectacular, featuring a fusion of poetry, music, theater, and stimulating discussions. Renowned figures from diverse fields, including cinema, literature, and social media, will come together to share their insights and talents.

This year’s event will be graced by an eclectic mix of celebrated personalities such as Badshah, Tamannaah Bhatia, Taapsee Pannu, Daler Mehndi, Ahsaas Channa, Divyenndu, Tigmanshu Dhulia, Maheep Singh, Jimmy Shergill, Pratik Gandhi, Gaurav Kapoor, and Sunanda Sharma. From legendary icons to fresh voices, the gathering serves as a vibrant platform for exploring the future of Hindi entertainment and digital culture.

Attendees can look forward to engaging sessions with industry leaders, dynamic performances, and thought-provoking dialogues on emerging trends reshaping the entertainment and media landscape. Lallantop Adda 2024 is set to inspire, entertain, and connect audiences with the finest elements of Hindi media and culture.

Be ready for an immersive experience that celebrates the essence of Hindi storytelling and innovation!

Pizza Hut Revives Momo Mia Pizza with Eye-Catching 3D Billboards

By
Supriya Biswas
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Pizza Hut has introduced stunning 3D anamorphic billboards in key locations across Mumbai and Bengaluru to spotlight its much-anticipated relaunch of the Momo Mia Pizza. These innovative billboards, featuring cutting-edge anamorphic technology, create the illusion of the pizza leaping off the screen alongside a refreshing glass of Pepsi, delivering a visual treat to passersby.

Initially launched in 2021 as a limited-time offering, the Momo Mia Pizza is making a festive-season comeback. Aanandita Datta, Chief Marketing Officer of Pizza Hut India, explained the decision: “We received overwhelming feedback when it debuted in 2021. Consumers often asked us to bring it back, so we felt the festive season was the perfect opportunity.” She also highlighted that 60-70% of the brand’s festive marketing budget has been allocated to promoting the pizza and its meal deal, priced at ₹299.

The campaign, crafted by independent agency Creativeland Asia, humorously embraces the initial reactions to the Momo Mia Pizza’s unique design. According to Datta, “When we first launched it, people loved the taste but found its appearance amusing, comparing it to a fidget spinner. Instead of shying away, we turned that feedback into a playful campaign with the tagline: ‘You can troll all you want, but you must try it.’”

With this creative approach and eye-catching advertising, Pizza Hut is setting the stage for a memorable festive season with the Momo Mia Pizza at its center.

Karan Johar Teams Up with Peter England for a Glamorous Wedding Campaign

By
Supriya Biswas
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Peter England, a leading menswear brand from Aditya Birla Fashion and Retail, has unveiled an exciting new campaign titled “The Bollywood Wedding,” featuring celebrated filmmaker Karan Johar. With the wedding season in full swing, this campaign seamlessly combines traditional charm with contemporary elegance, encouraging grooms and wedding attendees to embrace their moment in the spotlight.

In the campaign film, Karan Johar humorously brainstorms names for the collection, suggesting Bollywood-inspired titles like “Dulha Sajake Rakhna” and “Baarat Ho Toh Aisi.” His playful approach reflects the opulence, drama, and glamour typical of Indian cinema weddings. When the final name, “The Bollywood Wedding,” is revealed, Johar enthusiastically declares it a potential blockbuster, underscoring his faith in the collection’s appeal to fashion-conscious audiences. The range focuses on festive and wedding attire, showcasing classic two- and three-piece suits, luxurious velvet bomber jackets, and impeccably tailored shirts, perfect for any celebratory occasion.

Anil S Kumar, COO of Peter England, shared insights into the campaign’s vision: “This collaboration with Karan Johar captures the essence of confidence and style for grooms and groomsmen. The collection merges international trends with premium fabrics and Bollywood-inspired aesthetics, solidifying Peter England as a destination for unforgettable wedding fashion.”

The campaign, now live across India, is available in over 150 stores and is being promoted via traditional and digital media. On-ground activations and creative content collaborations are also planned, ensuring a captivating and immersive experience for customers.

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Burger Singh Hits Rs 78 Cr Revenue in FY24 Amid Mounting Losses

By
Supriya Biswas
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0

Burger Singh, a homegrown quick-service restaurant chain, showcased remarkable revenue growth but faced substantial financial challenges in FY24. Despite a 34% year-on-year increase in revenue, the company reported a sharp 6.3X surge in losses for the fiscal year ending March 2024.

The company’s operating revenue climbed to Rs 77.7 crore in FY24, up from Rs 57.8 crore in FY23, according to financial data sourced from the Registrar of Companies. Established 12 years ago, Burger Singh offers a menu of burgers, sides, desserts, and beverages across self-owned and franchise outlets.

The company earns its revenue from three primary sources: direct sales from its own stores, franchise goods sales, and franchise services. In FY24, food and beverage sales from its owned outlets accounted for 48% of the total revenue, increasing by 60% to Rs 37.66 crore. Franchise sales and goods contributed Rs 10.81 crore and Rs 28.6 crore, respectively.

Procurement costs remained the highest expense category, making up 43% of total costs. This expenditure rose by 31.3% to Rs 39.2 crore in FY24 from Rs 29.9 crore in FY23. Employee benefit expenses surged 54% to Rs 18.37 crore during the same period. Additional overheads, including commissions, travel, legal, and advertising costs, drove the company’s total expenditure up by 43.7%, reaching Rs 91.1 crore in FY24 compared to Rs 63.4 crore in FY23.

The rising costs outpaced revenue growth, resulting in a 6.3X increase in losses to Rs 27.9 crore in FY24. Burger Singh’s Return on Capital Employed (ROCE) and EBITDA margin stood at -94.76% and -30.94%, respectively. On average, the company spent Rs 1.17 to earn every rupee during FY24.

As of FY24, Burger Singh reported cash and bank balances of Rs 19.51 crore, with total current assets amounting to Rs 31.3 crore. In December 2023, the company secured a pre-Series A funding round at a $52 million valuation, led by Turner Morrison and existing investors. To date, Burger Singh has raised over $12 million and operates more than 175 outlets across 75 cities.

Vecmocon Secures $10 Million in Series A Funding to Drive EV Innovation

By
Supriya Biswas
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0

Vecmocon Technologies, a vehicle intelligence startup, has raised $10 million in its Series A funding round led by Ecosystem Integrity Fund (EIF), with participation from Blume Ventures and British International Investment (BII). This milestone follows a $5.2 million pre-Series A round in October 2022, where Tiger Global and Blume Ventures were key investors. Notably, Tiger Global did not participate in the latest funding phase.

Founded in 2016 at IIT Delhi by Peeyush Asati, Adarshkumar Balaraman, and Shivam Wankhede, Vecmocon specializes in cutting-edge vehicle technologies such as battery management systems (BMS), vehicle intelligence modules (VIM), and EV chargers. Currently, its products power over 70,000 EVs in India, with notable clients including Exide, BGauss, and Battery Smart.

The funds will be channeled towards enhancing R&D in high-voltage systems, energy storage solutions, 5G automotive connectivity, and Zonal ECU-compliant architectures. Vecmocon also plans to expand its team and set up a state-of-the-art R&D facility aligned with global standards for the electric vehicle sector.

The company is eyeing international markets, having already established a presence in Sri Lanka and setting sights on Southeast Asia and Africa.

For FY23, Vecmocon reported operating revenue of Rs 4.2 crore alongside a loss of Rs 41 lakh. Financial updates for FY24 are awaited. Before this funding round, its founding members collectively held a 55% stake in the company, while Blume Ventures and Tiger Global owned 12% and 10%, respectively.

This latest funding highlights Vecmocon’s mission to revolutionize EV technology and expand its global footprint.

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LegalKart Secures Rs 6.5 Crore in Latest Funding Round to Accelerate Growth

By
Supriya Biswas
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0

LegalKart, a platform specializing in legal consultation services, has successfully raised Rs 6.5 crore in a fresh funding round led by the IIM Udaipur Incubation Centre. Other participants in the round include Aevitas Capital, Shift Alt Cap, and more.

Previously, in January 2022, the Gurugram-based company secured Rs 4 crore in a pre-Series A funding round, backed by Mumbai Angels and other investors.

The newly raised capital will be used to fuel LegalKart’s growth and enhance the development of its AI-powered legal technology solutions. The company, founded in 2019 by Arvind Singhatiya, offers a range of services, from AI-driven legal documentations and consultations to custom digital solutions.

LegalKart’s platform enables users to interact with legal experts and lawyers in multiple Indian languages via audio and video calls, ensuring better accessibility across the country. Beyond consultations, the platform offers additional services such as property document verification, vehicle challan payments, and efficient legal document review and drafting.

Over the past eight months, LegalKart has reported a remarkable 453% increase in its business topline. The fresh funding will be crucial in sustaining this impressive growth, launching new AI-driven products, and extending the company’s reach into India’s tier II and tier III cities.

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Hydrogen Mem-Tech Secures Strategic Investment to Propel Global Green Hydrogen Expansion

By
Supriya Biswas
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0

Hydrogen Mem-Tech, a leading innovator in hydrogen separation technology, has secured a significant investment co-led by Peak Sustainability Ventures and AP Ventures, based in London. This funding deal grants Peak a 10.5% equity stake in the company, marking an important step in supporting Hydrogen Mem-Tech’s mission to revolutionize the production of clean hydrogen worldwide.

The Norway-headquartered startup, which is backed by major climate-conscious investors such as Saudi Aramco Energy Ventures, Shell Ventures, Yara Growth Ventures, and SINTEF, will utilize this new capital to scale its operations. The focus will be on developing an enhanced hydrogen separation unit capable of producing five times the current output, alongside accelerating the global production of green hydrogen, particularly targeting India’s energy market.

Hydrogen Mem-Tech, founded in 2017, specializes in cutting-edge hydrogen separation technology integrated with carbon capture. The company’s flagship innovation, Palladium Separators, is a patented system that transforms bio- and natural gas into high-purity hydrogen. This technology is key to various applications, including fueling vehicles and industrial processes such as heavy trucks, buses, trains, and ships.

As part of the deal, Samir Shah will be joining the board of directors of Hydrogen Mem-Tech. The company’s membrane-based separation process provides a highly efficient solution for extracting hydrogen from a wide range of gas streams and green ammonia, offering substantial cost-effectiveness and efficiency improvements. Hydrogen Mem-Tech’s breakthrough technology is expected to play a vital role in advancing global sustainability goals.

Peak Sustainability Ventures, known for its investment focus on pioneering solutions in energy, water, food systems, and climate tech, has a portfolio that includes innovative companies like Indra Water, SustLabs, and Proeon.

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