MUMBAI: FreshMenu claims it has broken even and is on its way to making a profit in this financial year. Rashmi Daga, the founder of FreshMenu, in an interview with ET said that the company had broken even, after it rationalised costs and saw a significant uptick in revenue over the past year.
“We turned our marketing costs down to almost zero,” said Daga.
She added that the company had also managed to rationalise shipping costs, which had been one of the major spends for the startup. In FY19, FreshMenu said it earned Rs 141 crore in revenue with a net burn of Rs 30 crore compared to Rs 123.72 crore in revenue and a loss of Rs 43.88 crore in financial year 2018. The FY19 earnings aren’t public yet.
Included in that are marketing costs, which have come down, as well as the expensive storefront FreshMenu opened at Bengaluru airport in October 2017. But Daga admits that it was not as successful as predicted. She said that the storefront was more opportunistic than anything else.
“The spot was available for a limited period of time and we decided to take it,” she added.
“We turned our marketing costs down to almost zero,” said Daga.
She added that the company had also managed to rationalise shipping costs, which had been one of the major spends for the startup. In FY19, FreshMenu said it earned Rs 141 crore in revenue with a net burn of Rs 30 crore compared to Rs 123.72 crore in revenue and a loss of Rs 43.88 crore in financial year 2018. The FY19 earnings aren’t public yet.
Included in that are marketing costs, which have come down, as well as the expensive storefront FreshMenu opened at Bengaluru airport in October 2017. But Daga admits that it was not as successful as predicted. She said that the storefront was more opportunistic than anything else.
“The spot was available for a limited period of time and we decided to take it,” she added.
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