Reliance-backed Clovia's FY23 loss widens 54% YoY; revenue from operations surges 70%

Delhi-based lingerie retailer Clovia posted a 70% increase in net profit to Rs 291.71 crore in the financial year ended March 2023, up from Rs 171.16 crore earned in the previous fiscal year, as per filings available with the Ministry of Corporate Affairs (MCA).

However, the Reliance Retail-backed venture’s net loss widened nearly 54% to Rs 80.93 crore in FY23, up from Rs 52.22 crore in the year-ago period, bogged down by increasing expenses.

The company’s total expenditure surged 68% to Rs 376.44 crore compared with FY22, with employee benefit expenses rising 121% year-over-year. Other expenses—the biggest cost centre for Clovia—stood at Rs 213.16 crore against Rs 117.63 crore last year.

FY23 was Clovia’s first financial reporting year after Reliance Retail Ventures Ltd (RRVL) acquired an 89% stake in its parent Purple Panda Fashions Pvt Ltd in March 2022. The deal—which was valued at Rs 950 crore—included a primary investment and a secondary share sale.

Clovia’s founding team is said to own the remaining 11% stake.

The deal helped Reliance Retail strengthen its online intimate fashion portfolio after its acquisition of Zivame in November 2020 and Amante in November 2021. The women’s apparel market is expected to grow to $39 billion by FY25 from $25 billion in FY20, according to research firm Wazir Advisors. Within apparel, innerwear is likely to drive this growth.