Mensa Brands finishes FY22 with a revenue of $41.36 million; sees a loss of $16.41 million

Mensa Brands Ananth Narayanan

Mensa is a D2C sales brand established in 2021 by Ananth Narayanan, Pawan Kumar, and Aniket Nikumb in Bangalore. The aim of this organization is to exponentially grow brands in the home, apparel, beauty, and personal care verticals. Mensa Brands is backed by marquee investors such as Accel, Falcon Edge, and Norwest as well as debt partners in Alteria and Innoven Capital.

As per the statements, the company ended its operations with an overall revenue of $41.36 million. During FY22, it spent nearly $88.55 million in acquisitions, which include $66.66 million fixed and $21.88 million contingent consideration. 

In short, these e-commerce roll-up companies acquire cash flow positive brands, but instead of acquiring the whole company, they structure it as an asset sale. These companies also raise debt funds and use them to service the deal terms.

As per the cost sheet, the cost of procurement of materials is the highest expenditure for the business in its operations, this also includes fashion and home products. The cost of procurement was around $19.26 million by the end of FY22. They also spent $8.98 million on marketplace expenses during FY22.

At the same time, they spent $3.64 million on advertising and business promotion expenses. The cost of legal and professional fees was $2.5 million in FY22. Another $3.33 million expenditure on freight took the total expenditure of the company to $59.5 million at the end of FY22.

As an overall result, the company saw a loss of $16.41 million by the end of FY22. As per financial analysis, it has been observed that the company spent $1.44 for every $1 they earned.

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