Duroflex private limited, which sells mattresses under the Duroflex & Sleepyhead labels, made headlines during FY22 for raising $60 million after a three year gap.
Backed by Norwest Venture Partner & Lighthouse Fund, furniture & sleeping solutions company D2C managed to increase its revenue by 57.5% to Rs893 crore in FY22 from Rs567 crore in the previous FY FY21.
Duroflex offer mattresses, furniture, bedding, pillow, and accessories through its website, offline store, and e-commerce marketplaces like Amazon & Flipkart. Revenue from products sales is the only source of income for the Bangalore based company. It also earned anothers Rs 6.86 crore in FY22, mainly from interest on current investment.
The company manufactures rubberized coconut fibre, polyurethane foam products & spring mattresses. Thus, the cost of materials is the largest cost center of the company and constitutes about 59% of total expenses. Such costs increased by 67.7% to Rs 545 crore in FY22 from Rs 325 crore in FY21.
Duroflex advertising & promotion expenses doubled to Rs 85 crore in FY22 from Rs 41 crore in the previous FY FY 21. It is worth noting that during fiscal year 22 September 2021, the company appointed actress Alia Bhat as its brand ambassador.
The brand employee benefit expense grew by 67% to Rs 75 crore in FY22 from Rs 45 crore in the previous fiscal year FY21. As the scale increased, the company transportation cost soared 2.2 times to Rs 57 crore in FY22.
The company added another Rs 78 crore collectively in contract labor & distribution expenses, bringing the total cost to Rs 929 crore in FY22 from Rs 541 crore in the previous FY FY21.
With an increase of almost 57% in its scale, the total expenditure also grew by 72% in FY22 & as a results, Duroflex posted a loss of Rs 32.26 crore in FY22. The company was profitable at Rs 20.49 crore in FY21.
The company competes directly with Sequoia backed Wakefit, which broke the Rs 400 crore revenue mark in FY21, Mumbai based SleepyCat, which is backed by DSG Consumer Partner & Samma Capital, Sleep Company. & other. For the record, Wakefit has actress Rashmika Mandanna as its brand ambassador and is targeting Rs 1000 crore in revenue in FY22.