The Souled Store Revenue Revenue Jumps 2X to Rs.150 Cr in FY22 but Slips into Loss

The Souled Store Revenue jumps 2X

In this article, we will explain “The Souled Store” revenue structure and the probable reasons that slid it to its humongous losses.

The Souled Store Revenue jumps 2X

The D2C (Direct-to-Consumer) firms are going through a purple patch in India. Reason? Due to technological innovations, upgradation of consumer lifestyle as well as awareness. You might have seen the stores of Lenskart and Nykaa in tier-1 cities because consumers find the products of D2C stores more authentic. One such famous D2C company is “The Souled Store.” It is an online retail brand that sells a wide range of fashion items and accessories to its users.

You can also create personalized apparel. It was founded in 2014 by Harsh Vardhan Lal and Rohin Samtaney. Recently, “The Souled Store” was all over the headlines related to startups. Why? Because it earned an enormous revenue of Rs.150 crore. That’s great! But the twist lies in its profitability.

Revenue & Losses of The Souled Store

The Souled Store revenue jumped 2X to Rs.150 crore in FY22 but slipped into a huge loss. This means the giant revenue couldn’t confer profits to the company! Its losses crashed to Rs.26.72 crore. Why did it make a loss despite making enormous revenue? You may ask. Go through the write-up and you will get the answer to your question.

Keep reading!

The Souled Store Revenue breakdown

First of all, let’s look at the bright side of the company. In FY22, The Souled Store earned revenue of Rs.145.1 crore. Do you know how much it earned last year (FY21)? Rs.79.59 crore. It is time to compare The Souled Store revenue for the last two fiscal years.

The Souled Store Revenue SourcesFY 22 (Financial Year 2022)FY21 (Financial Year 2021)
Sale of Merchandise ProductsRs.142.46 croreRs.77.69 crore
Subscription ServicesRs.2.64 croreRs.1.9 crore
Revenue Sources of “The Souled Store”

The Souled Store revenue increased in every fiscal year. It is quite fascinating! Isn’t it? But there is an intense dark side to this scenario. Expenses! You will get to know about it in the next section.


Although The Souled Store went through a golden phase of gradual growth in revenue. In FY 22, the total revenue was massive i.e. Rs.145.1 crore. But they couldn’t celebrate it as they should! Why? You may ask. Because of its ballooning losses. Now look at the following expenses that led to the losses for the company “The Souled Store.”

ExpensesFY 22 (Financial Year 2022)FY21 (Financial Year 2021)
Cost of materials consumedRs.52.29 croreRs.26.34 crore
Advertising & Promotion ExpensesRs.47.49 croreRs.16.84 crore
Employee Benefit ExpensesRs.19.01 croreRs.9.28 crore
Job Work ChargesRs.17.98 croreRs.6.61 crore
Cost TransportationRs.9.05 croreRs.4.93 crore
Web Hosting and Server SupportRs.4.00 croreRs.1.35 crore
OthersRs.22.74 croreRs.13.62 crore
Expenses of “The Souled Store”

Look at the tremendous expenditure on raw materials consumed and expenses. Now, you might have understood why “The Souled Store” is drowning in deep losses in spite of earning massive revenue. However, the company sees its expenses as potent investments that will contribute to a significant amount of revenue in the future. 

Financials of “The Souled Store”

The financials of the company “The Souled Store” is summarized in the following table-

The Souled Store’s FinancialsAmount (in crores)
Market ValuationRs.859 crore ($104 million)
Revenue EarnedRs.145.1 crore
ExpensesRs.172.56 crore
Profit/LossLoss of Rs.26.72 crore
Financials of “The Souled Store”

So, here is your answer- “The Souled Store was not profitable in FY22 because it dipped in the loss of Rs.26.72 crore.” Even though it earned an appreciable amount of revenue from its numerous revenue sources. But the cash outflow in various expenses was high as well. This means the amount spent on expenditures exceeded the amount of revenue earned. Eventually, it continues to face a significant amount of loss.  

Future Plans of “The Souled Store”

Despite humongous losses, “The Souled Store” is planning to achieve a revenue of Rs.1500 crore in the upcoming three years. Also, it is planning for an IPO in the year 2026. It admitted that it learned numerous lessons from past mistakes like innovations are crucial in changing customer’s expectations. Now it focuses on building a high brand recall to enter into a profitable phase in the upcoming fiscal year.

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Published By: Supti Nandi
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