Healthy snacking brand trims costs sharply, cuts losses by 93 per cent and turns Ebitda-positive despite a drop in revenue
Direct-to-consumer healthy snacking brand Happilo saw its revenue decline 15 per cent to Rs 280 crore in FY25 from Rs 329 crore in FY24, according to its parent Happy International’s annual filings. Despite the contraction, the Bengaluru-based firm cut losses by 93 per cent to Rs 9.5 crore from Rs 136.6 crore, largely through aggressive cost control, as per media reports.
Procurement costs, the largest expense, fell 17 per cent to Rs 212.4 crore, while employee benefits dropped 34 per cent to Rs 15.5 crore. Advertising and promotional spending was reduced by 59 per cent to Rs 28.2 crore, contributing to a 38 per cent decline in total expenditure to Rs 292 crore.
Happilo turned Ebitda-positive with Rs 3 crore, improving ROCE to -11.54 per cent and Ebitda margin to 0.89 per cent. The company spent Rs 1.04 to earn a rupee of operating revenue.
Founded in 2016, Happilo sells dry fruits, trail mixes, nut protein bars, dates, and muesli via its omnichannel network. The firm raised around USD 38.5 million across two funding rounds, including USD 25 million from Motilal Oswal Private Equity in February 2022.
Despite a challenging D2C market with low entry barriers and intense competition, Happilo’s disciplined cost management highlights a sustainable path forward, even as margins remain under pressure in an expanding but competitive category.
