Meesho navigates financial challenges from the Indian tax authorities, as DGGI demanded ₹1,500 crore in tax demand for the fiscal year 2023-2024

Meesho ₹1500 crore tax demand

Recently, the news about one of the most famous players in the Indian e-commerce industry has shocked the entire industry. This company, which is heavily funded by SoftBank, has established a major niche in the value-seeking segment of the market. It is currently being hit by the Indian tax authorities with a huge financial burden.

It is reported that the Directorate General of GST Intelligence (DGGI) has raised a demand for tax of about ₹1,500 crore. This is a demand regarding the fiscal year 2023-24 and a major point of tension between the tax enforcement arms of the government and high-growth technology platforms acting on the territory of the country.

Core of the dispute

The core of this massive tax bill will be a complicated dispute over the classification of the business activities of Meesho against the framework of Goods and Services Tax (GST). The taxation authorities have expressed concerns about how specific the nature of the services offered by the platform is and whether the platform operates purely as a marketplace or as a middleman.

This difference is hardly scholarly, since it has serious financial consequences. The manner in which Meesho organizes its deals and relationships with its sellers and the logistics partners may warrant a different tax treatment than the company has been exercising.

The ₹1,500 crore demand is an indication of what the government feels are unpaid or underpaid taxes due to such a mismatch of classification. In the case of a company such as Meesho, which operates at such a large scale and performs millions of transactions. 

Even a percentage shift in the tax liability per transaction can accumulate to the thousands of crores over a complete fiscal year. This trend points to the growing amount of scrutiny the digital platforms are now experiencing as regulators struggle to bring the existing tax laws in line with the rapidly changing forms of the modern internet economy.

Growing trends and financial health

This tax notification comes at an extremely inappropriate moment towards Meesho. During the last two years, the company has earned publicity due to its expansion, as well as its concerted efforts to be profitable and in preparation for a possible first-time public offering (IPO). Meesho experienced a dramatic change in its financial performance in fiscal year 2023-24, the year that this tax demand covers.

The company had been able to decrease its cash burn radically and was headed towards a positive contribution margin. A liability of ₹1,500 crore would hypothetically make the story of self-control that the company has been telling its investors and other stakeholders more difficult.

Though Meesho has managed to escalate its user base and grow its gross merchandise value, the huge tax payment is a huge contingent liability. Institutional investors tend to exercise a lot of caution in such unresolved legal and tax issues in the corporate finance world and in preparing IPOs. 

The company has found itself at a crossroads where it has to strike a balance between its ambitious expansion plans and the reality that it needs to settle an extremely risky legal suit that might affect its valuation and its cash reserves. Meesho is not the only one to encounter such kind of challenges. The tax notice raised by the DGGI is a wider trend as a number of large Indian startups and tech giants have received sizeable GST notices.

It is the same in the food delivery and gaming industry, such as Swiggy, Zomato, and other real-money gaming sites. These measures indicate that the Indian tax authorities are adopting a standardised and strict path towards ensuring that digital intermediaries adhere to the utmost level of tax reporting.

The motif of these controversies is how the platform’s role is to be interpreted. The authorities tend to claim that such companies not only play the role of linking buyers and sellers, but also propose that they offer comprehensive services and are taxed as such.

In the case of Meesho, the resolution of this disagreement is likely to be a precedent for the consideration of similar social commerce and marketplace platforms in the future. It highlights the importance of having an open and ongoing communication between tech companies and the regulatory bodies in order to navigate the complexities of the Indian tax law.

Conclusion

The ₹1,500 tax payment is a stark reminder of the regulatory risk that comes with the rapid scale of the digital economy. Although Meesho has shown incredible strength and development in a competitive market, its capability to effectively compete or to resolve this need will be a major challenge to its corporate governance and legal approach.

This tax challenge will be critical to the company as it proceeds with its IPO. It will need to deal with this challenge to keep the investors confident and the company financially stable in the long run. This is a developing crisis situation for the Indian startup ecosystem, as it reflects that as companies become a household name, they also have to expand into their capacities as key contributors to the national exchequer under increasingly vigilant oversight.

During this week, from Rorana to Cent, Indian startups raised $98 million in funding

Indian startups $98 million funding

It was an active week in the financial life of the Indian startup ecosystem, and investments in various sectors were extensive. In this time, fifteen Indian startups had been able to raise up to about $98 million. Although this is a large inflow of capital, it still compares to the previous week, which saw a record $482 million across 23 deals.

This almost 80% fall in cumulative funding demonstrates the natural sensitivity of weekly capital flows, frequently prompted by the occurrence or absence of funds of large growth rounds. Although the overall figure is lower, the quantity in terms of deals indicates that a large number of investors are determined to support viable business models at various levels of maturity.

Diverse inflows and significant funding

Among the highlights of the week was the massive funds raised by Rozana, a social commerce service offering an exclusive rural and semi-urban-focused offering. Rozana secured $22.5 million in a Series A funding round. The funding round was led by Bertelsmann India Investments and Fireside Ventures. It seeks to digitalize the huge, unserved rural India population.

Rozana utilizes the new capital to strengthen its logistics network, improve its technological capacity, and strengthen its presence in the market. By specializing in the most important items and the use of community leaders as the last-mile delivery, Rozana is poised to receive a substantial portion of the rural economy, which is still being adopted in the digital commerce arena.

Besides the prosperity of rural trade, the fintech market also registered significant performance with the startup Cent raising $10 million in funding. The Cent investment is indicative of the continued maturing of the Indian fintech sector, in which specialized financial products and infrastructure solutions are gaining popularity.

In addition to payments, other startups such as Cent are gaining traction by filling niche financial demand and enhancing the efficiency of financial transactions for businesses and consumers. This trend implies that the overall fintech market is competitive, but there remains a large potential for players who can offer more lucrative, more specific services that address a particular pain point in the financial ecosystem.

Another area to feature in the news this week is the food and beverage sector, when Curefoods, a leading cloud kitchen startup, raised $25 million in an extension of its Series C round. Three State Capital led this financing, which is aimed at assisting the company in expanding its various brand portfolios and is set to achieve a sustainable profit margin.

Curefoods has actively been engaged in merging different food brands under its name with an aim of streamlining supply processes and kitchen operations. The fact that investors continue to support the cloud kitchen model implies that they strongly believe in the long-term drift toward online food delivery and the efficiencies achieved through the centralized, technology-enabled management of the kitchen.

Strategic growth and geographical trends

Enterprise technology and Software-as-a-Service (SaaS) remained a cornerstone of the investment environment, and Atlan raised funds amounting to $6.5 million. Atlan specializes in the area of data collaboration and metadata management, with a global market that is growing increasingly hungry for softer tools that reduce the complexity of data landscapes.

The investment in Atlan reflects the sustainability of the build in India for the world strategy, whereby local engineering expertise is used to develop advanced software products for other global companies. With businesses around the world focusing on data-driven decision-making, startups that offer the powers behind the data are becoming lucrative venture capital targets.

Other smaller yet equally significant transactions were made during the week, such as the debt financing of the logistics company Shadowfax. This combination of equity and debt suggests that startups are evolving to be more complex in the management of their capital structures, choosing to use a variety of financial instruments as sources of capital growth. The involvement of established companies like Eight Roads Ventures and Peak XV Partners in several funding rounds during the week further confirms the quality and potential of the startups that are busy trying to make their way in the Indian market.

Geographically, Bengaluru continued to be the undisputed center of startup activity and a location where most deals and capital are located. The mentor, investor, and technical talent infrastructure that has been established in the city is still enough to make the city the choice of any entrepreneur.

Startups headquartered in Delhi-NCR and Mumbai also participated in the week in significant numbers, which means that the innovation is distributed healthily among the main economic hubs of India. This geographical spread is ensuring that the startup movement is not concentrated in any specific area, but it is bringing economic development to national levels.

Conclusion

The funding operation of the week, which includes both the rural emphasis of Rozana and the fintech innovations of Cent, provides a vivid picture of the ecosystem transition. Although the amount of funds under management was less than in the past week, the nature of the investments can be witnessed to show a strategic emphasis on sustainable business models and segments with high growth rates.

The ratio of early-stage and growth-stage ventures, and the levels of interest of both the local and foreign investors, indicate that the Indian startup scene remains an attractive place of innovation. These companies will probably be instrumental in the further digitization of the Indian economy as they use their new capital to scale operations and enhance technology.

Women cut FD exposure with allocation to fixed deposits from 45% to 20%, and equity mutual funds rose from 10% to 32%

Women investment shift India

Indian personal finance is undergoing a radical change as women investors abandon their conservatism of investing in safe portfolios for more aggressive market-based investment plans. A five-year study by Equirus Wealth released indicated that there is a sharp reallocation of capital by women.

The report indicates that the exposure of women to Fixed Deposits (FDs) has reduced by about 45% to 20% in the past five years. In the same period, the equity mutual funds to which they are allocated have increased dramatically from 10% to 32%, indicating a newfound trust in the equity markets and wealth creation on a long-term basis.

Resilience and the Equirus Wealth report

The approach is structurally reinvented in the Equirus Wealth report, where they studied the interactions with about 55,000 women investors and more than 100 relationship managers. Nowadays, this generation is moving more to goal-based portfolios that are more growth-oriented than nominally safe.

In addition to the shift towards equity mutual funds, there is also an increasing interest in alternative investment channels that are more complex. The averages of Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) have grown to a negligible level of 3% to about 7%. This diversification implies that women are no longer after better returns; they are now considering structured debt products, global equities, and private markets to create more resilience and balance in their financial futures.

The report highlights one of the most remarkable discoveries: the changing psychological attitude that women who invest in the market are adopting towards market movements. Instead of panicking in times of volatility, 75% to 90% of female investors now prefer to retain or consult their investments at the point of corrections in the market. This maturity signifies the shift of short-term speculation to a discipline and a long-term investment culture.

The researchers have observed that approximately 55% of women prefer to add capital when the market is at a low point. This actively aggressive action shows a long-held belief in the underlying strength of their portfolios and awareness of market cycles.

With corrections being viewed as an opportunity instead of a threat, women are now positioning themselves to take advantage of the inevitable recovery and compounding growth of the markets. This reorientation of the Indian woman investor towards the buying of products and the implementation of strategies is a characteristic of the contemporary woman in India.

Technology and legacy planning

As technology and Artificial Intelligence (AI) become the key topics of world investment negotiation, the report suggests that Indian women are embracing such tools with a cautious approach. AI is mostly being deployed as a research and learning tool and not as a substitute for human decision-making. About 35% to 50% of female investors do not use AI tools at all or use them very sparingly to track and get research information.

The ultimate decisions on how to construct the portfolio and how to allocate the assets remain very manual and guided by the professional advisors. According to Ankur Punj, MD and Business Head at Equirus Wealth, despite the increasing role of technology in the research process, disciplined frameworks continue to provide the main guideline in making investment decisions. This is a moderate rate of approach because investors are allowed to enjoy the benefits of technological efficiency, but at the same time maintain the personal and goal-oriented aspect of wealth management.

The report establishes an important trend whereby there is a tendency to use bucket thinking in constructing portfolios. Women are no longer looking at financial products as individual products; they are grouping their assets into specific categories based on specific goals: safety, growth, liquidity, and legacy. This changes the emphasis from mere selection of a product to the realization of the particular role of each asset in a wider financial ecosystem. The allocation structures would influence decisions made more than provisional market dynamics.

One of the priorities has become intergenerational wealth transfer. The research revealed that between 75% and 90% of the respondents are actively participating in discourse on legacy planning. This will not only guarantee an inheritance of financial capital to the beneficiaries, but also a tradition of financial discipline and governance. In wealth management among high-net-worth (HNW) and ultra-high-net-worth (UHNW) women investors, family governance structures and succession planning are now defining points in their wealth management strategies.

Conclusion

The Equinus Wealth report findings are a radical shift in how Indian women behave with regard to their finances. The women are showing complex knowledge of risk and reward by reducing their dependence on fixed deposits and increasing their exposure to equity mutual funds more than three times. This traditional savings to strategic, allocation-based investing is anchored in a robust attitude, which can endure market corrections and a legacy planning outlook.

As females proceed in perfecting their interaction with capital by applying a disciplined framework and technological insertion, they are not only establishing their own financial future but also influencing the economic outlook of the nation at large.

Sirona’s revenue from operations dropped by 23% to ₹77 crore in FY25

Sirona ₹77 crore revenue

Sirona, the leading competitor in the Indian feminine hygiene and intimate care sector, has recorded a sharp decline in financial performance during the fiscal year ending in March 2025. This was also marked by a high rate of internal change, and a significant shift in ownership, which seems to have raised a toll on the operating momentum of the company.

The most recent financial reports showed that the company has experienced a significant drop in its top-line revenue, which dropped to ₹77 crore in FY25. This amount is a significant reduction of 43.4% compared to the ₹136 crore revenue earned in the past fiscal year of 2024.

Decline in revenue and operational scalability

The revenue has been dropping mainly because a huge downsizing of the core operations of the firm occurred within an administrative tumult. Sirona, a company that was popular in the market with its products such as menstrual cups, tampons, and stand-and-pee devices, had been caught in the middle of a complicated transition after being taken over by the Good Glamm Group.

Although the company had been displaying the trend of growth, the FY25 numbers imply a strategic or accidental downsizing of operations in the market. The operating revenue that was ₹136 crore in FY24 was unable to sustain itself and resulted in the reported ₹77 crore.

This loss in revenues indicates that either the brand might have scaled back on its aggressive market expansion or encountered supply chain and distribution upheavals in the course of ownership transition. The effect of this loss in revenue is even more exaggerated when considering the total earnings of the company. The overall income failed to compensate for the decline in operations, even taking into account other sources of revenue.

To a brand that initially was perceived as a disruptive high-growth in the personal care industry, this downsizing is a harsh lesson of how unpredictable the situation can be during high-stakes mergers and acquisitions. The period between the founding individuals and the new majority owners seems to have changed the emphasis on intensive sales growth, and the result is the lowest revenue numbers the company has experienced in recent years.

Losses and marketing expenses

Sirona, in reaction to the declining revenue, had a series of aggressive cost-cutting steps, which it tried to stabilize its financial state. The total spending of the company on FY25 was established at ₹128 crore, marking 29.3% less than the ₹181 crore used in FY24. The advertising and promotional budget was also a major cut.

In addition, the company was working on the internalization of operations, resulting in the minimization of the expenses for the employees. During FY25, employee benefits reduced to ₹38 crore compared to ₹46 crore in FY24. This is indicative of the possibility that the company might have encountered a downsizing of its workforce or restructuring of its organization as part of becoming a part of the larger ecosystem of the Good Glamm Group.

Although these were cuts that were aimed at saving capital, they did not go far enough to propel the company into the black. Although it spent ₹53 crore less in FY25 than it had spent in the previous year, the company nevertheless was spending far more than it earned, which implies an inherent lack of harmony between its current cost structure and its lower revenue base.

Sirona’s bottom line was in a truly dire state despite the major efforts to reduce expenditure. The firm reported a net loss of ₹47 crore during March FY25. This represents a growth of ₹42 crore from the loss recorded last year. The evidence that losses continued to widen when cutting expenses was going on shows just how serious the downward trend in revenues could be.

When the top-line of a company declines at a greater rate than the overhead decrease, it has been found that the bottom-line is usually increased. The financial information shows that on each rupee of revenue collected, Sirona had continued to record significant losses, and thus, the road to profitability became even more challenging in the short term.

This financial strain was also shown in the EBITDA margins of the company. The business has a negative margin of about 39% in FY25, which means that at this stage, its core operations are not able to generate sufficient cash to cater to its basic business requirements. This is a vital financial health measure that the new management team should consider as it is a pointers of the work that is awaiting them.

As the company enters the post-transition period, the emphasis will probably have to be changed to a more sustainable development towards establishing a company that would successfully restore the revenue base without being overly dependent on unsustainable marketing initiatives of the past.

Conclusion

FY25 financial outcomes of Sirona are the portrait of a company that is undergoing a painful but, possibly, change that is necessary. The 43.4% decline in revenue to ₹77 crore, as well as the increasing net loss of ₹47 crore, are signs of the tension that the change of ownership brought and the departure of its founding team.

Although the relentless cut-down in marketing and staff expenditures indicates an investment in fiscal control, the resultant decline in sales indicates that the brand will need a new means of tapping into consumer markets that does not involve the high-fueled spending of the first years. With the Good Glamm Group fully in control and keen on settling the pending legal wrangles, the new emphasis should be on stabilizing the position of the brand in the market and a way to go to a sustainable growth in a highly competitive market in the personal care sector.

Bonkers Corner secured $10.5 million in its Series A funding round led by India SME Investment Fund at a  valuation of $48 million

Bonkers Corner $10.5 million funding

Bonkers Corner is a leading firm in the direct-to-consumer fashion business in India. Bonkers Corner has been able to close its Series A financing round at about $10.5 million (approximately ₹95 crore). This injection of capital will be a milestone in the life of the Mumbai-based brand, which has been quickly establishing a niche within the booming streetwear market.

It was an investment round led by the India SME Investment Fund. The round also involved a wide range of investors, such as Radhakrishna Ramnarain Pvt Ltd and Namita Thapar, who is a regular guest on Shark Tank India. This large investment round indicates that the investors have a lot of confidence in the brand to grow in the competitive Gen Z and millennial fashion markets.

Share allotment and valuation estimation

The Bad Brains Streetstyle Pvt Ltd board in the Series A round had a comprehensive allotment of shares, in which it acts as a parent company of Bonkers Corner. The company issued a total of 3,12, 644, Series A Compulsorily Convertible Preference Shares (CCPS) at an issue price of 3,038 per share as per official filings with the Registrar of Companies.

India SME Investments played a major role in the deal as it contributed a total of ₹64.5 crore (approximately $7.15 million) of the total amount. Radhakrishna Ramnarain Pvt Ltd came next, having invested ₹17.8 crore, and Rajesh Raheja contributed ₹3 crore to the pool.

Namita Thapar, a prior investment commitment player on Shark Tank India, also invested in this round with a contribution of ₹50 lakh under Thapar Vision LLP. This fulfilled her full investment of ₹1.5 crore in the brand.

In addition to these lead figures, more than 20 other investors were also involved in the round, including several angel investors. This group support has greatly contributed to the capital reserves of the company, and the funds have already been deposited into its bank account to enable it scale its operations immediately and embark on strategic moves.

After the successful accomplishment of this funding tranche, ownership of Bonkers Corner has experienced a significant change. The firm now has India SME Investments as a major institutional shareholder, with a share of 15%. The current shareholder is Radhakrishna Ramnarain Pvt Ltd 4.14% and Namita Thapar has a small stake of 0.37%.

Although several other institutional and individual investors have entered the company, the founders still control the majority of the company. Sanjay Gupta, along with his wife Reena Gupta, has a majority position of 70.62% in the firm, which means that the legacy of visions of the founders is at the centre of the future of the company.

The company has been valued on a post-money basis at about ₹430 crore (approximately $48 million). This valuation is a measure of how fast the brand has grown since it was started in 2020.

Established by Shubham Gupta, the brand has managed to grow out of a fledgling startup to be a well-financed venture with a definite national expansion strategy. The acquisition by this valuation is a sign of success in terms of the startup remaining financially viable and drawing in large-scale institutional investors.

Product portfolio strategy and operational growth

This growth has been experienced by the company without compromising on profitability. The brand also recorded a net profit of ₹4.3 crore during the same fiscal year, which indicates that the business model used by the firm is viable and no longer relies on the high-burn customer acquisition strategies.

The capacity of the brand to earn profit, and increase the top-line revenue by the numbers of tens, is what makes it an outlier in the realm of D2C, in which a lot of companies tend to experience high losses of the operations. With its emphasis on operational performance and product-market fit that delves deep into the heart of its target market, Bonkers Corner has shown that it can scale in a responsible manner. This was a significant source of growth and profitability that attracted the attention of the private equity firms, such as India SME Investments.

Bonkers Corner has established a reputation for being a fashion brand that specializes in street wear and is available for men and women. The product line will be targeted to the preferences of Gen Z and younger millennials, with the products being oversized graphic T-shirts, gym apparel, hoodies, sweatshirts, and co-ord sets.

The brand utilizes a direct-to-consumer strategy that focuses on social media use and influencer marketing to target its target audience. The new capital will also facilitate the further development of the brand into offline retail and the increase of its supply chain power as the company moves into the future. By shifting towards an omnichannel strategy, Bonkers Corner will give people a seamless shopping experience combining the convenience of online shopping with the physical experience of a physical store, which will further establish the company in the Indian fashion market.

Conclusion

The successful Series A of $10.5 million, which is the initial financing round, is a milestone for Bonkers Corner as it makes it a prominent company in the Indian D2C industry, with a valuation of $48 million. Having the support of such strategic investors as India SME Investments and with the ongoing support of the founders and early investors, such as Namita Thapar, the company is positioned well to take the next step in its growth. Its good financial record, marked with a high level of revenue growth and a steady profitability, offers the company a strong base for its future expansion plans.

Rozana secured $30 million in its latest funding round led by Bertelsmann India Investments (BII) and Fireside Ventures

Rozana $30 million funding

Rozana is a rural-oriented specialized commerce platform. It has managed to raise $30 million during its recent funding round. This was a major capital contribution led by the current company investors, Bertelsmann India Investments (BII) and Fireside Ventures.

Other new investors also participated in the round, such as the US-based venture capital firm Spark Growth Ventures and the family office of the Bikaji Foods International promoters. This capital, including a debt financing amounting to about $5 million, is a significant seal of approval of the originality of the business model of Rozana and its capacity to penetrate the unexploited large rural markets in India.

Valuation and expansion strategy

The effective completion of this round of funding has given rise to a drastic rise in Rozana’s market value. The valuation of the company increased more than two times and is close to $200 million. This is a large jump compared to the valuation of about $80-$85 million in 2024.

The increase in value this much is indicative of the confidence of the investor in the rural commerce opportunity and the particular solution to the logistical and consumption problem, which Rozana has identified in the Indian countryside. The participation of established investors such as Bertelsmann and Fireside, coupled with players who are aligned with the industry, such as the Bikaji promoters, implies the strategic worth that is observed in the distribution capacity of Rozana, its comprehensive penetration into the rural home market.

Rozana serves almost 21,000 villages spread mostly in the states of Uttar Pradesh and Haryana. It has already gained a huge presence on this platform with more than one million rural households served. The company has established high geographic expansion goals with the new capital.

Rozana intends to venture into between two and three other states in the Gangetic belt with interest in certain areas like Madhya Pradesh, Odisha, and Punjab. This expansion plan seeks to replicate what has been achieved by the company in the northern part of the country, where they have managed to introduce organization in their commerce and a major range of products, to the rural masses who have always enjoyed a narrow range of retail products.

Multi-layered approach and fund utilization

Rozana was founded in 2021 by Ankur Dahiya, Adwait Vikram Singh, and Mukesh Christopher. Rozana has established its success on a hybrid omnichannel commerce platform. This model combines three unique layers: a simple consumer application, an advanced distribution network, and a physical presence in the form of over 75 retail experience centres.

The multi-layered strategy will make the brand affordable to consumers at varying levels of digital literacy. Rozana manages to reduce the gap between online shopping and the offline shopping culture by integrating the convenience of the application with the trust and physical presence of the physical shops.

The network of over 18,000 micro-entrepreneurs is one of the main elements of Rozana, which contributes to its business success. These village-level entrepreneurs, commonly known as partners in the ecosystem, are the main point of contact between the platform and the rural consumers. They assist in the adoption, local delivery, and create the required trust in their localities.

This is a decentralized workforce that enables Rozana to grow speedily without the overhead of the traditional retail expansion. The micro-entrepreneurs will enjoy the partnership by getting a source of income, and Rozana enjoys a localized and efficient distribution channel capable of accessing the last mile of the vast Indian rural terrain.

The additional funding of $30 million will be implemented on several strategic fronts in order to guarantee sustainability and market dominance over the long run. One of the main areas to be focused on is enhancing the company’s technology infrastructure. The digital platform will also require an upgrade to accommodate a larger number of users and a more complicated supply chain as the company goes to new states.

Rozana will use the money to introduce new product lines and further its relationship with other consumer brands. The platform provides a large variety of products, such as the FMCG staples, snacks, clothing, home care products, and electronics.

Much of the investment will be in the form of building its own-label brands. Through the establishment of its own brands, Rozana will be able to provide products of high quality at competitive prices and enhance its own margins. The company intends to expand intensively in terms of expansion as well, with a vision of increasing its physical presence, opening its outlets to more than 200 retail shops.

These are experience centres that enable customers to experience products and the brand, which strengthens the presence of Rozana in the communities that it operates in. This revelation of a handful of dozens of centres into more than 200 centres points to an immense change of becoming a leading retailing force in the Gangetic belt and beyond.

Conclusion

The idea of Rozana raising over $30 million is a step forward in the development of Indian rural trade. The company has increased its valuation by 2-fold and has gained the support of large domestic and international investors, which shows that there is a viable and highly scalable way to serve the next billion consumers.

By its pioneering hybrid system and its web of micro-enterprises operating at the village level, Rozana is not just supplying millions of households with the much-needed goods but also generating economic employment in the rural heartland.

Cent secured funding from OneFlow Holdings and South Park Commons

Cent funding

The Indian healthtech environment is experiencing a considerable change with Cent, a startup serving the purpose of early disease detection, based in Bengaluru, making an announcement regarding the fact that it received an unspecified amount of capital. OneFlow Holdings, the family office of Practo founder Shashank ND, and the famous investment firm South Park Commons are the strategic investors.

The funding is a milestone of vital importance to a firm based on the ideology that the existing healthcare system is essentially reactive instead of proactive. With the support of proven industry giants and specialized venture capital, Cent is putting itself at the forefront of a new era of preventive medicine wherein high-fidelity diagnostics and artificial intelligence are utilized instead of the usual and sometimes inadequate annual checkups.

Transparency and idea for Cent

Cent was founded by a heavyweight team composed of industry veterans such as Shashank ND, founder of the healthcare platform Practo, Arpit Garg, ex-Lenskart, and Anshul Khandelwal, ex-Ola Electric. This founding team has a synergy of intense knowledge in healthcare technology, retail business, and high-volume consumer services.

The Cent concept was inspired by an intensely personal background since both Khandelwal and Shashank lost loved ones due to cancer. The experiences made them wonder why life-threatening diseases are always diagnosed at late stages, even in the light of well-developed medical technology. The startup mission is to bridge this gap through the development of a special purpose environment that would particularly focus on the early detection of cancer, cardiac, and metabolic diseases.

Cent has consciously chosen to go direct-to-consumer (D2C) in a market where the majority of healthcare platforms have a business-to-business (B2B) approach, where the organizations typically sell services to insurers, hospitals, or other large organizations. As the co-founder and chief business officer of the company, Anshul Khandelwal believes that this model guarantees that the interests of the startup are not conflicting with those of the patient.

Cent does not have to deal with commissions to hospitals, doctors, or insurance providers, which leaves the company with a clear relationship with its users. The startup makes its income only through the customers using its services, which contributes to upholding the integrity of its clinical findings. It is especially crucial in cases involving sensitive medical information and initial diagnoses that will necessitate urgent medical care.

Operations and technology

Centers of Cent operations is a proprietary screening protocol called CCNM or Cardiac, Cancer, Neurological, and Metabolic. This entire diagnostic set is much more extensive than a typical physical examination. It combines MRI scans of the entire body, cardiac CT, ECG, and DEXA scans with an evaluation of more than 120 blood and urine biomarkers and genomic testing.

This large collection of unprocessed data is subsequently analyzed with sophisticated artificial intelligence and assessed by a group of radiologists and medical experts. The outcome is a comprehensive, 60 to 70 pagesorgan-level report that offers a particular health rating of each of the major body systems. This evidence-based strategy enables the Cent to score an Early Detection Index (EDI) of about 83 percent, which is simply phenomenal when compared to the 15% to 20% efficiency of traditional annual health screening.

Cent has already demonstrated the clinical necessity of its services as it became operational in the first quarter of the 2026 fiscal year. The company has already performed over 1,500 scans, and 26% of the scans have produced clinically meaningful results.

The site identified life-threatening or critical conditions in asymptomatic cancer or severe cardiac blockages in 3% to 4% of its users. These persons did not have any previous symptoms, which illustrates the capability of the platform to detect the diseases before they become incurable. The startup is financially performing well, as it is growing at 50% per month and has an annualized revenue run rate (ARR) of about $2 million.

Cent will aggressively expand its physical presence in India with the new capital raised. The firm will establish specialized early diagnostic facilities across the key urban centers, with the first flagship in Bengaluru to be launched in April, and expansion will be done to Mumbai, Delhi, and Hyderabad.

On top of this local expansion, the startup is already looking into international expansion and is also partnering with other manufacturers of imaging equipment across the globe to streamline diagnostic machines to service preventive uses. Cent is working to change the trajectory of healthcare by establishing a specific infrastructure that integrates appropriate technology, protocols, and capital to transform the narrative of illness management to long-term wellness maintenance by the power of early intervention.

Conclusion

Cent managed to raise funds and expand operations so fast, which provides indicators that the Indian healthtech sector has reached a turning point. The company has been responding to a major need gap in the market by shifting from the outdated commission-oriented B2B models and adopting a high-tech, AI-driven D2C model.

As Cent expands its network of detection centers throughout the largest cities in India, it is not merely constructing a business; it is also constructing a new norm of how technology can be employed to expand human life by ensuring that the largest and most dangerous threats are identified well before they develop.

After driver-on-demand, DriveU forays into chauffeur-driven car rental service 

DriveU chauffeur car rental service

The Bengaluru-based company has also rolled out foldable e-bikes for driver-partners in Bengaluru to help them reach pickups faster, especially during peak traf ic and late hours. 

Bengaluru, India — [March 2, 2026]: DriveU, India’s largest on-demand driver service platform, is stepping into another highly competitive sector with the launch of ‘Rentals by DriveU’, a chauffeur-driven car rental service. 

With Rentals, DriveU expands beyond its core driver-on-demand offering to serve customers who want a premium car with a professional chauffeur, especially for weddings, business travel, airport transfers, long-weekend getaways, pilgrimages, and other special occasions. The launch marks DriveU’s entry into India’s increasingly competitive, fast-growing chauffeur-driven mobility market. 

“We revolutionised on-demand driver service with a combination of pricing transparency, tech prowess and customer support,” said Rahm Shastry, CEO, DriveU. “Over the years, our customers have consistently asked for one thing: the same service reliability they trust from DriveU drivers, but with a car included for occasions that demand a more curated experience. Additionally, we have a huge cohort of NRIs and international visitors who are looking for the ‘DriveU-level’ service for their travel needs. That’s why we designed Rentals by DriveU to deliver chauffeured car service with our marquee service quality.” 

DriveU has already set up a dedicated Rentals team in Bengaluru and is running a pilot to fine-tune the operating model before scaling to cities like Mumbai, Delhi NCR, Chennai and Hyderabad. The company is building Rentals with a tightly-managed operations layer—covering fleet onboarding, chauffeur grooming, trip readiness, and real-time support. It has also partnered with 400+ vendor partners and has access to a network of 1,500+ cars, ranging from sedans to premium luxury vehicles such as Mercedes-Benz and BMW. 

The Bengaluru-based company is also designing clear service SLAs for critical moments—arrival punctuality, last-mile readiness, and customer handover

protocols—supported by a central command and customer support team to manage edge cases in real time.The service also includes thoughtful experience details such as luggage assistance, and clean, air-conditioned cars equipped with essentials like water bottles and tissue boxes. 

DriveU’s push into new initiatives comes as the company completes two years of profitability and is preparing for its next phase of growth. In FY2025, DriveU reported 22% revenue growth to approximately Rs 111 crore, with a net profit of Rs 1.7 crore. 

Recently, the company also rolled out foldable e-bikes in the pilot phase for the driver-partner in Bengaluru. These lightweight, foldable e-cycles will enable driver-partners to reach customer locations faster, without depending on last-mile public transport or struggling with availability during late hours. 

Driver-partners often face real, everyday mobility challenges—especially after completing late-night trips or when operating in areas with limited public transport. The foldable e-bike folds in seconds, making it easy to fit in the trunk of the car. It is lightweight, durable, and designed for city use. With a riding speed of up to 25 km/h, it provides a smooth, quick, and eco-friendly way for drivers to move around. 

Once fully deployed, these micro-mobility vehicles have the potential to assist over one lakh driver-partners every day by the end of 2026. This innovative solution can save drivers significant “dead” time when they are not earning any income, reduce fatigue between trips, and contribute to lowering overall carbon emissions in the city. 

While foldable mobility solutions are widely used in countries like China, they are still new to India’s driver community. DriveU aims to change that by adapting the global best practice to Indian roads and user needs.

India poised to unlock ₹40 Lakh Crore in GDP potential by enabling women’s participation in long-term financial investments: Lxme-EY Report

India ₹40 lakh crore GDP potential

National, 5 March 2026: Lxme, India’s leading financial platform for women and EY India have today released a report ‘Unlocking Her Wealth: The Untapped Economy – Redesigning Financial Systems for Women from Inclusion Metrics to Ownership Outcomes’, introducing India’s first Women’s Financial Prosperity Index (WFPI). The index scores India at 28.1 out of 100, revealing that while financial access for women has expanded rapidly, the majority of their journey toward long-term wealth creation remains structurally blocked.

India has achieved one of the fastest financial inclusion expansions globally, with over 89% of women now holding bank accounts and digital payments embedded into daily life. Yet the report highlights a critical paradox: access has not translated into agency, and participation has not translated into wealth.

This paradox sits at the heart of Lxme’s own journey. In 2025, Lxme launched Lxme Pay, India’s first UPI experience designed specifically for women, built on the insight that everyday financial participation is often the first step toward long-term wealth creation. While digital access has expanded nationally, Lxme’s platform data shows that intentional design built around women’s financial realities significantly accelerates movement from transaction to investment.

Drawing on national datasets, global benchmarks, an EY survey of 1,033 respondents, and Lxme’s proprietary platform data from over one million users, the report outlines the structural barriers limiting women’s financial outcomes:

  • Women earn ₹73 for every ₹100 earned by men, with over 60% employed in informal sectors with volatile incomes.
  • Only 41.7% of working-age women participate in the labour force, compared to 78.8% of men.
  • Just 8.6% of women invest in mutual funds or equities, versus 22.3% of men.
  • Only 14.2% of women hold pensions or provident fund accounts, compared to 32.8% of men.
  • Women account for just 25% of mutual fund folios and typically begin investing five years later than men, with nearly half the average first investment size.
  • Indian women hold only 60% of men’s retirement wealth.
  • Only 21% of Indian women are financially literate.

The Lxme – EY report estimates that enabling women’s participation in long-term financial investments could unlock a cumulative ₹40 lakh crore GDP-equivalent opportunity. This represents incremental national growth driven by deeper capital market participation, stronger domestic savings, and sustained long-term investment.

The Women’s Financial Prosperity Index (WFPI) is the first index of its kind to measure not just whether women have financial access, but whether they use it, control it, and ultimately build wealth through it. India’s score breaks down as follows:

DimensionScoreWhat it means
Access9.1 / 20Many women have accounts but accounts used mainly for withdrawals, not wealth
Inclusion5.8 / 25Accounts are largely inactive; formal product participation remains low
Agency7.4 / 25Women lack decision-making authority and investment confidence
Outcomes5.8 / 30Few women are accumulating assets or preparing for retirement
TOTAL WFPI SCORE28.1 / 100Over two-thirds of the path to financial wealth remains blocked

Commenting on the Report, Priti Rathi Gupta, Co-Founder, Lxme said, “India has built one of the world’s most extensive financial inclusion infrastructures. But inclusion without agency is an incomplete story. Our data shows that when women are given the right environment; confidence, community, and products designed for their real lives, they don’t just participate in markets, they lead them. This report is a call to the entire ecosystem: regulators, banks, fintechs, and policymakers. The ₹40 lakh crore opportunity is not hypothetical. It is waiting. And unlocking it starts with designing for women not around them.”

Adding to it, Saurabh Chandra, Partner – Financial Services, EY India said, “India has made significant strides in financial inclusion, but the report highlights, through comprehensive data analysis, that the financial system can improve in catering to the specific needs of women. The ₹40 lakh crore opportunity shows the potential that can be unlocked by enabling financial policies and practices that support women’s economic needs. For India to sustain its economic momentum, prioritizing women’s financial empowerment must be viewed as an essential component of our macroeconomic strategy.”

The report concludes that financial inclusion alone is not sufficient to drive economic equity. Bridging the gap between access and ownership will require coordinated action across regulators, financial institutions, fintech platforms, and policymakers to design systems that reflect women’s real income patterns, life cycles, and investment behaviours. Unlocking women’s wealth, the report argues, is not just a gender issue,  it is a macroeconomic imperative for India’s next phase of growth.

Note for Media

Report title: Unlocking Her Wealth: The Untapped Economy – Redesigning Financial Systems for Women from Inclusion Metrics to Ownership Outcomes

Published by: Lxme, in partnership with EY India

Date: 25 February 2026

Methodology: The WFPI draws on national datasets including PLFS, NFHS, Global Findex, SEBI, AMFI, RBI, ILO, and GSMA, alongside an EY survey of 1,033 respondents across key demographic segments and Lxme’s proprietary platform data from over one million users.

About Lxme: 

Lxme, is India’s leading financial platform for women. Launched in 2021,Lxme’s vision is to reduce financial gender disparity and inspire women to independently manage their money and achieve their dreams. By bringing financial learning tools, simplified investing and instant loan options, saving products, and support opportunities for women all in one app, Lxme is creating a comprehensive financial ecosystem tailored to their unique needs.

Recognized globally, Lxme was featured in Her Majesty the Queen: The Official Platinum Jubilee Pageant Commemorative Album 2022 and awarded the “Warrior of Change” at the Annual Impact Creator Awards 2021. Lxme’s Facebook Community was selected for Facebook’s Community Accelerator Program, and Lxme is among the 20 startups chosen by the Google for Start-ups Accelerator Program.
Visit us at: www.lxme.in 

About EY

EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets. Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow. EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fuelled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.

All in to shape the future with confidence.

EY refers to the global organization, and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com

Nifty 50 suppressed the major psychological and technical level of 24,600 mark, VIX slides 11.63%

Nifty 50 24,600 level

The Nifty 50 and the S&P BSE Sensex, which are the lead benchmark indices, were trading with positive but modest gains, which is an indication of a cautious but optimistic mood among the market participants. The Nifty 50 index has managed to pass the important psychological and technical mark of 24,600 to make it to 24,643.05.

This was a rise of 42.10 points or about 0.17% over its last closing value. The S&P BSE Sensex was positive, and it increased to 81,141.53 by 118.88 points or 0.15%. The markets were able to hold these levels, which reflects a constant amount of buying pressure on the markets, as the area of the price movement in the morning was limited.

Calming of the volatility index and modest growth

Among the most significant changes throughout the session was the dramatic cooling down of the market volatility. India VIX, the main indicator of investor fear and anticipated market movements, dropped significantly by 11.63%, with the index dropping to 13.91. A dramatic decline in the VIX can frequently indicate that investment participants are getting less nervous about prevailing market conditions and feel less threatened by unexpected and negative price action in the short-term.

This reduction of the volatility index was accompanied by a robust market expanse in the Bombay Stock Exchange. In the trading data, there were 2,125 shares that were experiencing price increases and 1,440 shares that experienced price declines. Another 150 shares were held unchanged. This favorable ratio of winners to losers attests to the fact that the upward trend was not backed by a limited number of heavyweight holders but was facilitated by a more widespread range of the market.

The frontline indices had a small growth, but the market segments were much better because the performance of the Sensex was way below the performance of the broader market segments. S&P BSE Mid-Cap index advanced by 0.58% and S&P BSE Small-Cap index recorded a stronger growth of 0.72%. The performance of these segments is usually robust evidence of a strong risk enthusiasm among domestic investors and implies that buying interest is fairly spread across different market capitalizations.

In the sectoral scenario, the media and automobile industries became the best performers with a growth of 1.14% and 1.11%, respectively. The state sector that invests in the bank index also did very well, recording an increase of 0.99%. On the other hand, the information technology industry experienced a slight decline in sales, as it dropped by 0.96%, and the pharmaceutical industry narrowed the margin by 0.14%.

Corporate development and stock movements

The Nifty 50 index movements of individual stocks showed the leading nature of the automotive industry in the rally during the morning. Bajaj Auto was the best-performing company with a growth of 2.37%, and the next company was Hero MotoCorp with 2.11%. The other major gainers in the index were Bharat Petroleum Corporation Limited, which increased by 1.61%, Tata motors which increased by 1.34%, and Maruti Suzuki India, which increased by 1.15% points respectively.

Certain large-cap stocks performed poorly in locating momentum. The top loser in the Nifty 50 was Dr. Reddy laboratories which lost 1.48% of its value. The IT giants also dragged the index as Infosys and Tata Consultancy Services dropped 1.05% and 0.99%, respectively. Other shares that dropped red were Tech Mahindra and Shriram Finance that fell by 0.81% and 0.75%, respectively.

Some of the companies were highly volatile in their price movements due to particular corporate announcements and business wins. NHPC experienced an increase of 2.65% in its shares when the firm reported that its subsidiary, NHPC Renewable Energy, was in a Memorandum of Understanding with the Government of Rajasthan to develop a 2,000 MW Solar Park.

Ircon International also recorded 2.21% growth in infrastructure space after securing a large order in the North Frontier Railway to the tune of about ₹750 crore. The scope of this project is to construct a balance station building and other similar works. Exide Industries’ stock increased by 1.63% following an order won by its subsidiary, Exide Energy Solutions, with a leading manufacturer of green energy vehicles in the world, to supply Lithium-ion battery packs, which is a major step towards the company’s expansion into the green energy supply chain.

Conclusion

The mid-day session on March 5, 2026, ended with the Indian markets holding their own ground with the Nifty 50 holding its own above 24,600. The significant lesson of the session was the drastic reduction of the India VIX by 11.63%, which created a favorable ground for wider market participation.

The total market sentiment was positive with mid-cap and small-cap stocks taking the lead in gains, and several companies enjoying huge contract announcements in the renewable energy, railway, and electric vehicle industries. Despite the slight rebuke witnessed in the IT and pharma sectors, the auto and media sector strength made sure that the benchmark indices remained squarely in the green territory as the trading day continued.

Battery Smart officially commenced its pre-Series C funding round to scale EV infrastructure

Battery Smart pre-Series C funding

Battery Smart is a leading company in the fast-developing electric vehicle infrastructure market in India, and recently announced the commencement of its pre-Series C round. The strategic move is a major milestone for the company as it aims at consolidating its market leadership in the battery-swapping market.

As the market of efficient, scalable charging solutions to two-wheelers and three-wheelers keeps growing at a high rate in the country, Battery Smart is finding itself positioned to have a larger portion of the ecosystem. This new funding initiative is indicative of how the company is shifting out of the disruptive phase into the scaled infrastructure player that can help sustain the massive shift to sustainable mobility in urban centres.

Funding phase and foundational growth

The business is already in a high level of negotiations to have a capital of between $60 million and $80 million. It is reported that this pre-Series C round will largely be propelled by the existing pool of high-profile investors of the company.

The fact that existing supporters have remained is an indication of a high level of confidence in the efficiency of the operations of Battery Smart and its battery-as-a-service model. Although the exact specifics of the round remain to be finalized, the capital inflows are aimed at giving the startup the required runway to continue its aggressive growth path and overcome the capital-intensive character of the physical infrastructure network creation.

This subsequent financing round comes after an extremely successful Series B round that was closed in June 2023, with Battery Smart raising $65 million. In that last round, the company had been valued at about $341 million post-money.

As the pre-Series C round began, the market is looking forward to a significant upward adjustment in the company’s valuation. This anticipated growth is a direct result of the ability of the startup to expand its operations substantially over the last year, as well as its achievement in creating a thick network of swapping stations in major urban regions.

Pulkit Khurana and Siddharth Sikka founded Battery Smart. Battery Smart has established its reputation in overcoming two main problems of charging electric vehicles: long charging time and their expensive initial cost. The company enables the delivery partners and commercial drivers to change their drained batteries with fully charged ones in less than two minutes, by having a huge network of swapping stations.

The model has actually been a vital part in the EV adoption narrative in India, especially among the gig economy workforce that depends on high vehicle usability. The company has become the partner of choice for thousands of users of electric three-wheeler and two-wheeler vehicles due to its capacity to offer a smooth and dependable service.

The startup has one of the most powerful lists of cap table investors in the venture capital industry, with Peak XV Partners (which was once called Sequoia Capital India), Tiger Global, Blume Ventures, and Orios Venture Partners, among others. These institutional investors have made Battery Smart invest in long-term infrastructure construction, as opposed to short-term user acquisition. With this sort of heavy-hitting backing, the company has been able to remain ahead of the competition that has been characterized by other well-endowed competitors such as Sun Mobility and Lithion Power.

Financial performance and primary goal

The Battery Smart financial health indicates a company that is experiencing a high rate of growth. The startup has recorded a remarkable growth in its operating revenue in the fiscal year that ended in March 2023. The numbers increased about 7.5 times to ₹50.8 crore against the previous fiscal year levels of only ₹6.75 crore.

This phenomenal growth in the top line is a clear signal of the colossal uptake of its swapping services. The way to establish a national infrastructure brand is through heavy capital spending. As a result, the net losses of the company also increased and grew by ₹64.5 crore in FY23 in comparison with ₹13.08 crore in FY22.

These losses have been mainly caused by the high prices that are charged in establishing the physical points of swapping, acquiring high-quality lithium-ion batteries and investing in the technology that is needed to handle thousands of simultaneous transactions. These foundational assets will be worth the investment once the network density becomes even higher, and the company will be able to enjoy improved economies of scale. A further optimization of these unit economics, as the pre-Series C funds will probably be used, for further planting flags in new geographic territories in India.

The expansion of the coverage of Battery Smart in additional cities and the improvement of its technological capacity will become the main target of the fresh capital. The company seeks to establish a trading station every few kilometres so that the fear of range will be a thing of the past among owners of EVs.

The startup will further expand its collaboration with original equipment manufacturers (OEMs) to make sure that additional future electric vehicle models will have them using their standardized battery packs. Developing a network that will be interoperable and accessible, Battery Smart is virtually constructing the fueling stations of the future.

Conclusion

The commencement of the pre-Series C funding round is a significant event that shows the maturity of the Indian EV support system. Battery Smart has the resources and capabilities to overcome the logistical and financial challenges of nationwide expansion with the support of industry giants such as Peak XV and Tiger Global.

The further development of the company will be the relent of the sustainability of battery swapping as a mainstream solution to the shift of the world to electric mobility. The successful completion of this round will not only be a benefit to Battery Smart, but it will also create a tremendous spillover effect on the general optimism in the green energy infrastructure of India.

BlissClub achieves robust growth with ₹130 crore revenue and reduces losses by 55% loss in FY 2025

BlissClub ₹130 crore revenue

BlissClub is a direct-to-consumer brand that specializes in activewear for women. It has announced a year of tremendous financial performance in the economic year, which will end in March 2025. As the latest financial reports submitted by the company to the Registrar of Companies indicated, the startup has not only passed a significant revenue benchmark, but it has also been able to reduce its net losses by 55%.

This two-fold performance of highest line growth and bottom-line success is a turning point of critical importance in the firm in its journey to manage the competitive India athleisure market environment. FY25 performance indicates the strategic change towards operational efficiency and stricter control of internal spending, especially when it comes to workforce management.

Cost optimization and the core of BlissClub

The core of BlissClub’s financial narrative for FY25 is its phenomenal growth in operating revenue. The operations revenue of the company increased by 51% to ₹131.5 crore in FY25 as compared to the ₹87 crore in the prior fiscal year of 2024. The company sold active wear, accessories, and lifestyle products to women. This was virtually the only source of operating income that caused the growth to be experienced. BlissClub has targeted functional apparel directly crafted to fit the Indian body shape and climate, which has helped it create a strong customer base that has sustained its growth.

Besides its main sales, the company experienced a non-operational income of ₹3.5 crore during the period as well. This is another source of income, which is usually comprised of interest earned on bank deposits and other financial investments. 

This took the overall income of the company to the 2025 fiscal year to ₹135 crore. The brand has been able to sustain a consistent growth pattern in an already saturated market, which underscores how the brand resonates with its intended audience and how the company has succeeded in delivering its offerings both via its own online offerings and via third-party platforms.

Though the revenue was increasing significantly, the company was capable of managing its overall spending was the major factor that drove the reduced losses. All costs of BlissClub increased 14% and hit ₹155.5 crore in FY25, as opposed to ₹136 crore in FY24. Although the percentage changes in expenses were not higher than the increase in revenue, the internal structure of these expenses was transformed.

The highest individual cost to the brand was the cost of materials, which increased by 38% to ₹62 crore because of the increased production to cater to the increased demand. Advertisement and promotion were also increased by 31% to ₹29.5 crore, and transportation and shipping costs also increased more than twofold to ₹16 crore, as more intricate physical distribution and delivery channels take shape.

Such increases were more than compensated for by a radical cut in employee benefit costs. BlissClub has been able to reduce its expenditure on human resources by 42% to ₹18 crore in FY25 as compared to ₹31 crore in the previous year. This drastic reduction indicates a drastic re-organization of the labor force and a shift to a leaner organizational paradigm.

The current period’s legal charges were ₹5 crore. The increase in revenue by 51% and total expenses by only 14% states that the company is just starting to enjoy the benefits of operating leverage, which means it can expand and not have its overhead increase proportionately.

Investor backing and loss reduction

This disciplined fiscal management has led to an impressive increase in the profitability rates at the company. BlissClub has indicated a net loss of ₹20 crore in FY25, and that is a loss of 54.5% compared to the ₹44 crore loss BlissClub suffered in FY24. The unit economics of the brand have also improved. In the current fiscal year, the business incurred an expenditure of ₹1.18 for every single rupee of operating revenue, which is much better than the past years, when the burn rate per rupee earned was very high.

Although the trend in the reduction of losses is positive, the overall margins of the company are negative. Return on Capital Employed (ROCE) was reported at -44.57%, and the EBITDA margin at -15.09%. These are the numbers that should signify that although the road to profitability is becoming clearer, the company has much to do before it can stand fully financially independent. 

However, BlissClub is still highly capitalized to finance its successive growth stage, as it had cash and bank balances of 39 crore and total current assets of ₹75 crore at the end of the fiscal year. A total amount of about $21.6 million has been raised to support the venture of BlissClub. Elevation Capital is the main lead investor and the majority external shareholder of the firm, with a 24.5% stake in the firm.

The other large holders of the company’s cap table are Eight Roads Ventures, which has a share of 15.79%. These existing high-profile venture capital firms offer the brand the needed runway to increase offline and expand its product range, including its recent move into the travel wear category.

BlissClub is in a more crowded segment in the broader market. It is in direct competition with other established players and other emerging D2Cs, including Kica Active, SilverTraq, Cultsport, Cava Athleisure, and HRX.

It competes with international brands of value, such as Domyos and Decathlon. The community engagement and functional designs of its brand in the Indian market are the main differentiators of the brand as it attempts to attain a larger market share of the growing market in the area in terms of athleisure and wellness products.

Conclusion

The financial performance of the BlissClub during FY25 shows that it has implemented the strategy of growth with efficiency successfully. The ability to exceed the ₹130 crore revenue figure and, at the same time, decrease its losses by 55% has demonstrated that the company is able to grow its operations and, at the same time, lower its burn rate considerably.

The radical reduction in employee expenditures and the rationalization of unit economics imply that the management is putting an emphasis on a sustainable route to profitability rather than on unbridled growth. Since the company is still enjoying the benefits of its robust investor support and growing omnichannel presence, its capacity to sustain this balance will be very important in determining its success in the long-term with the changing Indian retail ecosystem.