Bewakoof, the well-known D2C fashion and lifestyle brand, continues to navigate a gradual recovery phase after the pandemic slowed its earlier momentum. The brand, recognized for its youthful voice, relatable messaging, and trendy clothing, had once crossed ₹200 crore in revenue before COVID-19 hit demand. In FY25, its revenue reached ₹173 crore, showing progress yet leaving room for growth. However, the company’s financial performance did show improvement in one major area: its losses reduced significantly due to better cost management and operational discipline.
Revenue Growth Moves at a Slow Pace
During FY25, Bewakoof recorded operating revenue of ₹173 crore, growing 7.5% from ₹161 crore reported in FY24. The company continues to earn revenue mainly through the sale of its clothing and lifestyle products such as T-shirts, hoodies, bags, and accessories. These products remain popular among urban youth who look for casual and expressive fashion at affordable prices.
The company reported gross sales of ₹264 crore during the period. After accounting for customer returns worth ₹67 crore, the net revenue reflected a return rate of approximately 25%. This marks an improvement from the previous year, where returns stood close to 30%. The decline in return rate suggests better product fit, customer satisfaction, and improved inventory planning, which are crucial factors for any fashion-led D2C brand operating online.
Optimizing Cost Structures to Reduce Pressure
Bewakoof’s biggest improvement came from its ability to bring down its overall costs. The cost of procurement, which forms the core of its business expenses, remained stable. Employee-related costs showed a major decline, dropping nearly 40% to ₹26 crore in FY25. This indicates a leaner organizational structure and possibly a stronger focus on operational efficiency.
The company continued investing in advertising and brand visibility, spending ₹49 crore, slightly higher than the previous year. Transportation and handling expenses rose to ₹35 crore, reflecting the growth in shipping and logistics needs of an online-first company. However, despite these increases, overall spending declined. Total expenses dropped from ₹265 crore in FY24 to ₹248 crore in FY25, representing a 6.4% reduction. This cost-focused approach played a key role in strengthening the company’s financial position.
Losses Narrow as Efficiency Improves
Reduced expenditure directly helped the company lower its net losses. Bewakoof’s losses decreased from ₹103 crore in FY24 to ₹73 crore in FY25, marking a 29% improvement. On a per unit level, the brand spent ₹1.43 to earn ₹1 in FY25, compared to ₹1.65 in the previous year. This improvement shows better cost efficiency, more controlled spending, and disciplined scaling.
The Road Ahead for Bewakoof
While Bewakoof has taken positive steps, its journey toward full recovery is still ongoing. The brand operates in a highly competitive online fashion market, where pricing pressure and customer expectations continue to be challenging. However, the reduced losses, better inventory control, and steady revenue growth indicate that the company is moving in a healthier direction. If this momentum continues, Bewakoof may be able to rebuild its growth curve and return to its earlier scale in the coming years.