Clovia records impressive revenue growth, reaching Rs 291.71 cr in FY'23

24 November 2023, Mumbai

In the fiscal year ending March 2023, Delhi-based lingerie retailer Clovia recorded an impressive 70 per cent increase in revenues, reaching Rs 291.71 crore compared to the previous fiscal year's Rs 171.16 crore, according to Ministry of Corporate Affairs (MCA) filings.

However, despite robust top-line growth, the Reliance Retail-backed venture reported a substantial net loss of 54per cent, amounting to Rs 80.93 crore in FY23. This loss was attributed to a notable increase in expenses, which rose by 68per cent to Rs 376.44 crore compared to FY22.

Spotlight

Of particular note is the remarkable 121 per cent year-over-year surge in employee benefit expenses and other expenses reaching Rs 213.16 crore, a significant rise from the previous year's Rs 117.63 crore.

Reliance Retail Ventures acquired an 89 per cent stake in Clovia's parent company, Purple Panda Fashions, last year, leaving the remaining 11per cent in the hands of Clovia's founding team. Valued at Rs 950 crore, this deal included both primary investment and a secondary share sale, contributing to Reliance Retail's strategic expansion in the online fashion sector.

Data-point

The women's apparel market is poised for substantial growth, projected to reach $39 billion by FY25, up from $25 billion in FY20, according to a report by Wazir Advisors. A significant driver of this growth is expected to be the innerwear segment.

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