Wakefit aims to become profitable by FY24 end

Accessories, home décor, and furniture brand Wakefit expects to become profitable by the end of the 2024 financial year on March 31 as its factory functions at full capacity. The business also plans to continue to open stores across the country. 

“We are very close to profitability and we will be able to turn positive by the year closes [sic] in March,” said Wakefit’s co-founder Chaitanya Ramalingegowda, ET Retail reported. The business had previously reached profitability but slipped out of it due to increased losses. 
 
The 2023 financial year saw Wakefit’s revenue increase to Rs 800 crore up from Rs 633 crore in the 2022 financial year. However, the business’ losses also shot up by 36.4% to Rs 150 crore in the same time period. Part of the reason for its increased losses was its launch of its largest factory to date which, now functioning at full capacity, is expected to make solid returns on its investment.  

The business is not currently looking to secure external funding because it still has unused investments left from its last funding round. “We have most of that capital still with us and because we are EBITDA [earnings before interest, tax, depreciation, and amortisation] positive, we don’t need cash for day-to-day running of operations,” said Ramalingegowda.
 
Wakefit runs over 50 stores in India and has a brick-and-mortar presence in 19 cities across the country. The brand plans to continue to expand its brick-and-mortar footprint and open between three and four stores each month.