WoodenStreet’s Remarkable Financial Journey in FY23: Nearing Rs 200 Crore in Revenue
In an impressive display of continued growth and profitability, WoodenStreet, the omnichannel custom furniture platform, has once again proved its mettle in the competitive furniture market. With its roots in Jaipur, the company has shown a notable increase in its sales figures, recording over 50% year-on-year growth in recent years, a testament to its robust business model and market demand for its products.
The financial year 2023 was a remarkable period for WoodenStreet, with its revenue from operations surging by 48.1% to reach Rs 194 crore, up from Rs 131 crore in the previous fiscal year, according to its annual financial statements filed with the Registrar of Companies. This leap in revenue highlights the company’s success in capturing the essence of modern-day furniture needs while maintaining a stronghold on profitability for the fourth consecutive year.
Founded in 2015, WoodenStreet has quickly ascended as a leading provider of home solutions, offering an extensive range of products that include solid-wood and modular furniture, kitchen and wardrobe units, home decor, lighting, and furnishings. The company prides itself on operating over 90 stores across the country, bolstering its presence with more than thirty thousand furnishing products to cater to diverse customer needs.
The fiscal year ended March 2023 saw the company generating its revenue primarily through the sale of furniture, furnishings, and decor items. Furthermore, WoodenStreet also earned Rs 3.54 crore from interest on deposits and investments, bringing its total revenue for the year to a remarkable figure of Rs 198 crore.
With a keen eye on managing its expenses, WoodenStreet’s cost of procurement for its wide array of products accounted for 62.7% of its overall expenditure, amounting to Rs 123 crore for FY23. This was a 46.4% increase from the previous year, in line with the company’s scale of operations. A cumulative rise in expenses related to employee benefits, rent, advertising, promotion, and other overheads brought the total expenditure for the year to Rs 196 crore, pointing towards careful and efficient operational management.
The company’s adept control over its cost mechanisms has not only facilitated its growth but also ensured profitability, with its Return on Capital Employed (ROCE) and Earning Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin standing at 1% and 3.4% respectively. On a unit level, WoodenStreet demonstrated efficient financial management by spending Rs 1.01 to earn a rupee in FY23, showcasing its prudent expense control and revenue generation strategies.
In its journey so far, WoodenStreet has successfully raised $34 million, including a significant $30 million in Series B funding led by WestBridge. As of March 2023, the company boasted current assets worth Rs 126 crore, including cash and bank balances of Rs 45.2 crore. Its enterprise value to revenue multiple stood at 6X, emphasizing its solid financial standing when compared to other VC-backed consumer-facing internet firms.
The furniture industry comes with its unique set of challenges, such as sourcing, designs, inventory management, and product degradation. WoodenStreet has distinguished itself by navigating these challenges successfully, thereby establishing a profitable business model. The path ahead involves scaling up operations to achieve higher revenue milestones while managing the costs associated with logistics, warehousing, and market expansion. The strategic challenge remains to carve out a niche for itself, particularly with the anticipated expansion of global giants like Ikea in the Indian market by 2026.
WoodenStreet’s journey so far illustrates a story of resilience, strategic growth, and financial acumen, setting a commendable benchmark for others in the industry. With its eyes set on future growth, the company is well-positioned to navigate the complexities of the furniture market while continuing its profitable streak.
