Bengaluru-based jewelry startup Giva reported today that operating revenue for the fiscal ending March 2024 stood at ₹274 crore, higher by 66% from ₹165 crore in the previous fiscal year. Giva has been growing the presence of the jewelry startup in a highly competitive jewelry market, competing with brands like Melorra, Bluestone, CaratLane, and several other funded and family-led brands.
PC: Facebook
The company’s fair financial performance has recently been given a boost from an investment round where Giva has emerged with $30 million in an extended Series B round in October with Premji Invest. The capital injected is expected to take Giva’s capabilities in the development of products and expansion in the marketplace to a newer level, enabling the brand to strengthen its foothold in traditional as well as digital retail spaces.
Started as a thin portfolio brand offering budget jewelry, Giva has since evolved to offer gold jewelry and lab-grown diamonds. It now operates 150-odd stores in India through a franchise-led model into an omni-channel platform to capture wider markets. The company achieved this through one omnichannel platform-the jewellery sale and related products prop up as the major source of revenue for Giva.
While the topline growth has been extremely impressive, the profitability side of things is where things have gone terribly wrong. The losses have grown 30% year-on-year, coming in at ₹59 crore for FY24 against ₹45 crore for FY23. This growing loss is due to the growing expense being incurred on employee benefits, marketing, and even that on customers. In the case of Giva, employee benefits have shot up multifold; ₹50 crore to be precise – 2.38 times from ₹21 crore. This again speaks to what Giva has been investing into while trying to fuel growth.
This is another cost-sensitive segment for Giva. The costs in terms of metals and diamonds stood at 34% of its overall costs. These rose by 53.3% to ₹115 crore in FY24. Branding and marketing was another area of investment for ₹87 crore to ensure that Giva strictly remains a brand in a highly competitive marketplace. Operations consisting of shipping, commission, rent, and legal expenditure cost Giva ₹338 crore on a 59.4% increase on the previous year’s figures.
Despite the cost headwinds of higher operating expenses, Giva has managed well and improved its ROCE and EBITDA margins, now at -24.4% and -17.1% respectively. The company spends ₹1.23 in cost to earn a rupee of revenue; hence, the investment in taking the business to scale is basically an ongoing process.
Giva’s financial position thus stands solid with cash and bank balances of ₹83 crores while total current assets stand at ₹244 crores in FY24. As of date, Giva has garnered more than ₹690 crores in funding so far. Considering the given data, it is well placed for potential future growth.
In brief, Giva’s aggressive jump in revenue by 66% to ₹274 crore in FY24 will be attributed to its successful strategy of strengthening its product offerings and omnichannel presence. The company, with challenging cost and increasing losses, does not seem to bother much, but the innovation and massive market it creates through its story does promise well. On this track of a tough fight, Giva promises quality products and extraordinary experiences for its customers.
