Libas, a direct-to-consumer brand specializing in ethnic and fusion wear, approached Rs 500 crore in revenue during the fiscal year ending March 2024. However, increased spending on advertising and employee benefits resulted in a 64% fall in profits during the same period. Libas’ revenue from operations increased by 38% to Rs 487 crore in FY24, from Rs 352 crore in FY23, as per its financial statement sourced from the Registrar of Companies (RoC).
The growth in scale came with a sharp increase in expenses across the board. Total expenses rose 45% to Rs 483 crore in FY24 from Rs 334 crore in FY23.When it comes to expenses, Libas’s material costs remained its largest expense, making up over 61% of total costs, which rose 41% to Rs 296 crore. Advertising expenses surged 121% to Rs 42 crore, and employee benefits increased 56% to Rs 28 crore, while shipping costs totaled Rs 49 crore. The sharp spike in advertising and employee costs led to a 64% decline in profit, falling to Rs 5 crore in FY24 from Rs 14 crore in FY23. The company reported a Return on Capital Employed (ROCE) of 26.32% and an EBITDA margin of 3.06%. On a per-unit basis, Libas spent Re 0.99 to earn every rupee in revenue.
As of March 2024, the Delhi-based company reported current assets of Rs 269 crore, with inventory alone accounting for Rs 154 crore. Significantly, its cash and bank balance stood at just Rs 30 lakh. According to startup data intelligence platform, Libas has raised $18 million of funding from India Advantage Fund. The company’s co-founders, Sidhant Keshwani and Sunil Keshwan, own 84% of the company.
ABOUT LIBAS
Libas has been founded by Sidhant Keshwani and Sunil Keshwani. Sidhant Keshwani and Rajkumar Periwal are the CEO of Libas. Libas is a digital-first women’s ethnic wear brand offering kurtis, salwar suits, dresses, and bottoms in fabrics like cotton, silk, and georgette. Libas is a women's ethnic wear brand specializing in online retail of Indian and Indo-Western clothing. They offer a wide variety of ready-to-wear options, including suits, sarees, lehengas, and contemporary dresses, as well as custom tailoring and accessories. Libas also operates a Couture section featuring premium ethnic and bridal wear.