Jewelry startup Giva has posted strong financial results for the fiscal year 2024 (FY24), reporting a 66% increase in revenue to Rs 274 crore, up from Rs 165 crore in FY23. However, the company also experienced a 30% rise in losses, which increased to Rs 59 crore, up from Rs 45 crore in the previous fiscal year.
Key Financial Performance
Giva, which began as an affordable jewelry brand and has since expanded into gold jewelry and lab-grown diamonds, attributed the growth to its omnichannel approach. The company operates around 150 physical stores across India and has adopted a franchise-led model to widen its reach. Jewelry sales remained its primary revenue driver in FY24.
The company saw a significant rise in its operating expenses, with the cost of procurement of metals and diamonds increasing by 53.3%, amounting to Rs 115 crore in FY24, which formed 34% of its total costs.
Other major expenses included marketing and employee benefits, with branding and marketing expenditures reaching Rs 87 crore and employee benefits rising 2.38 times to Rs 50 crore in FY24.
Operating Losses and Growth Challenges
Despite the surge in revenue, Giva’s losses grew 31% to Rs 59 crore in FY24. The increase in costs, particularly in procurement and marketing, contributed to this rise. The company’s EBITDA margin and ROCE were negative, at -17.1% and -24.4%, respectively, which reflects ongoing challenges in achieving profitability.
Giva spent Rs 1.23 for every Rs 1 earned in FY24, showing that while revenue growth is strong, the company is still struggling with cost management and achieving efficient scale.
Strategic Investments and Market Conditions
In October 2024, Giva raised $30 million in an extended Series B funding round, backed by Premji Invest, bringing its total raised to over Rs 690 crore. The funds will be used to support expansion and strengthen its position in the competitive jewelry market.
However, the company faces challenges due to economic conditions affecting the jewelry sector, including fluctuations in gold prices and the oversupply of lab-grown diamonds. These factors have put pressure on margins, which could impact Giva’s performance in FY25.
Despite these hurdles, the company continues to focus on growing its customer base and brand presence, making it a brand to watch in the competitive jewelry market.
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