Personal care brand enriched with caffeine MCaffeine aims log Rs 700 crore sales in FY24 as the company expands its presence on online and offline channels and strengthens its product portfolio.
Mumbai-based Pep Technologies (the owner of mCaffeine) is also looking at Reinforcement of attitude to increase the number of employees to around 200 people in the next 18 months.
âWe launched mCaffeine in October 2016 and have served almost 2.5 million customers to date. This year (FY22) we will be $ 300 billion by FY24 at Rs 700 crore, “Tarun Sharma, co-founder and CEO of mCaffeine told PTI.
He added that It is expected that 70 percent of mCaffeine’s business in FY24 will be generated through online channels. while 30 percent would be via offline channels because the company is also expanding its presence in brick-and-mortar stores.
“We will by FY24 expect to be present at 8,000-10,000 offline retail points across the country. Online will always be the first focus for us because that’s how the brand came about. But our customers are omnichannel and that’s why we want to be on the shelf near them, âsays Sharma.
He added that the company has approximately 60 employees and as its business expands it will reach 200 over the next 18 months as mCaffeine hires in strategic positions, offline retail, marketing and supply chain.
In terms of offline expansion, Sharma said some of the areas the company is considering include Maharashtra, Bengaluru, Punjab, Gujarat, Bengal, parts of Chattisgarh, TTM (Telugu, Tamil, and Malayalam speaking markets) – which are strong markets for the brand when it comes to selling online too.
Founders Vikas L and Tarun Sharma.
The company has over Rs 60 crore in funding and is supported by investors, including Amicus Capital and RPSG Ventures.
Speaking of the company’s product portfolio, Sharma said mCaffeine launched 13 products and has 31 SKUs in its range this year.
âWe will continue to bring new products to market. Five years later, the average for new product launches is 20 products per year. For us, sales by product density is extremely important – that is, if I’ve done a Rs 300 crore deal with 30 SKUs, what have others done for it – is it less or more, “he added.
Sharma found this metric speaks about brand affinity, stickiness, repeat purchases, product penetration, and category leadership.
“We almost have three times better sales by product density compared to any other brand. That means someone else put 90 products on the market to reach Rs 300 crore. And that is one of the most important key figures for us. So we will be expanded to 15 additional products, and will have 45-46 products by the end of the fiscal year, but when we get to market we will make sure our sales by product density are intact and growing, “he added.
Sharma stressed that the company is its Sales by product density twice as high as currently in the next five years, because “we will increase the spread of the products and our products should have a larger proportion of the categories”.
mCaffeine has an in-house product research and development team and has has partnered with three third party manufacturers to make the products.
When asked about international expansion, Sharma said: “We believe that we are one a good chance to put India on the map of global iconic bulk premium / premium brands. “.
“International has always been in the back of our minds and this year we’re starting two regions. We received a tremendous amount of responses from Amazon’s top 10 regions, the usual suspects USA, Middle East, Southeast Asia. So we close on two. First, we’re going to go online, understand the consumer, set up our teams in these regions, and not go offline when the market doesn’t require it, “he added.
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