Subko Coffee Posts INR 14 Cr Sales In FY23, Incurs INR 9 Cr Loss

Mumbai-based specialty coffee and craft-baked goods brand Subko Coffee Roasters reported sales of INR 13.5 Cr in the financial year ended March 31, 2023. This was 94% higher than the INR 7 Cr operating revenue it posted in the previous fiscal year. 

Subko Coffee earns revenue by selling coffee and bakery products through its cafes and website. As per its financial statement, the startup earned most of its income – INR 13.4 Cr from the sale of coffee products in FY23.

Meanwhile, net loss rose to INR 9.1 Cr in FY23 from INR 1.7 Cr in the previous fiscal year. 

Where Did Subko Coffee Spend?

Total expenditure jumped 176% to INR 23.4 Cr during the year under review from INR 8.5 Cr in FY22, in line with the startup’s growing business. 

Employee Benefit Expenditure: Employee cost was the biggest expenditure for the specialty coffee startup. It spent INR 6.6 Cr on employee benefit expenses during the year under review, an increase of 154% from INR 2.6 Cr. This indicates that the startup has been increasing its employee headcount. 

Cost Of Materials Consumed: Subko Coffee spent INR 3.8 Cr to procure raw materials for coffee, bake house, and cacao products in FY23, up 58% from INR 2.4 Cr in FY22. 

Rent: The startup’s rent expenditure more than doubled to INR 2 Cr in FY23 from INR 70 Lakh in the previous fiscal year. 

EBITDA loss stood at INR 8.2 Cr as against INR 87 Lakh in FY22. EBITDA margin stood at -60.5% during the year under review compared to -12.46% in the previous fiscal year.

Incorporated in 2019 and launched in 2020, Subko Coffee claims to source coffee beans, fine cacao, and wheat directly from farmers. Besides its website, It sells its products via its flagship cafes and ‘mini’ pop up stores. 

Earlier this year, the startup raised around $10 Mn in funding from Nikhil Kamath at a valuation of $34 Mn. The round also saw participation from Blume Founders Fund, The Gauri Khan Family Trust, John Abraham and his wife Priya, among others. 

Subko Coffee said it will use the fresh funds for talent acquisition, developing tech-driven customer experiences, product and design research, improving farm-level infrastructure for specialty green coffee and fine cacao beans, and launch of new ‘ready to drink’ coffee products. 

Subko Coffee competes against the likes of new age specialty coffee brands such as Third Wave Coffee, Blue Tokai, abCoffee. 

The post Subko Coffee Posts INR 14 Cr Sales In FY23, Incurs INR 9 Cr Loss appeared first on Inc42 Media.