Virat Kohli’s co-owned fashion brand WROGN has reported a net loss of ₹75 crore in FY25, marking a 31.6% rise from ₹57 crore in FY24, even as the company secured fresh funding to fuel expansion. According to financial statements filed with the Registrar of Companies (RoC), WROGN’s revenue from operations dipped 9% to ₹223 crore, while total expenses swelled to ₹313 crore, driven by a 63% surge in advertising and a 14% increase in employee costs. For investors, fashion industry watchers, and Kohli fans searching WROGN FY25 loss 75 crore, Virat Kohli fashion brand financials, or WROGN revenue decline 2025, this challenging year highlights the competitive pressures in India’s ₹5 lakh crore apparel market, where newer labels like Snitch and Rare Rabbit are gaining ground. Despite the red ink, WROGN’s recent ₹75 crore infusion from Aditya Birla Digital Fashion Ventures Ltd (ABDFVL) in October 2024—boosting their stake to 32.84%—signals confidence in its youth-centric positioning.
Launched in 2014 by siblings Anjana and Vikram Reddy, WROGN targets urban millennials with edgy apparel, footwear, and accessories, leveraging Kohli’s star power for endorsements. The brand has raised over $90 million to date, but FY25’s performance underscores the need for sharper cost controls amid slowing sales.
FY25 Financial Snapshot: Losses Widen Despite Cost-Cutting Efforts
WROGN’s FY25 results reflect a tough operating environment, with revenue contraction outpacing expense reductions, leading to deeper losses. Total income fell to ₹232 crore, including ₹9 crore from other sources like interest on deposits.
Key figures:
- Revenue from Operations: ₹223 crore (down 9% from ₹245 crore in FY24).
- Total Expenses: ₹313 crore (up 3% from ₹305 crore), with employee benefits at ₹39 crore (up 14%) and advertising/promotions at ₹63 crore (up 63%).
- Net Loss: ₹75 crore (up 31.6% from ₹57 crore).
The cost of materials dropped 29% to ₹164 crore, aiding some margin relief, but marketing overhauls and hiring for expansion eroded gains. EBITDA margin stood at -27.5%, with ROCE at -70%, per Entrackr analysis.
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹245 Cr | ₹223 Cr | -9% |
| Total Expenses | ₹305 Cr | ₹313 Cr | +3% |
| Employee Benefits | ₹34 Cr | ₹39 Cr | +14% |
| Advertising & Promotions | ₹39 Cr | ₹63 Cr | +63% |
| Net Loss | ₹57 Cr | ₹75 Cr | +31.6% |
Challenges: Revenue Slump and Competitive Pressures
WROGN’s FY25 struggles stem from a mix of internal and market factors:
- Sales Dip: Apparel demand softened amid economic slowdowns, with e-commerce competition from Myntra and Ajio eroding share.
- Expense Surge: Marketing ramp-up to reclaim visibility post-Kohli’s IPL focus, plus team expansion for offline stores (now 100+ outlets).
- Market Saturation: Newer D2C brands like Bewakoof and The Souled Store captured youth segments, with WROGN’s 29% revenue drop mirroring industry trends.
Vikram Reddy, co-founder, attributed it to “strategic investments for scale,” but analysts note the need for profitability amid $90 million raised.
Funding Lifeline: ₹75 Crore from Aditya Birla Boosts Stake to 32.84%
In October 2024, ABDFVL infused ₹75 crore, increasing its stake from 17.1% to 32.84% on a fully diluted basis. This follows a June 2024 Rs 125 crore investment, valuing WROGN at around ₹700-800 crore.
- Investor Rationale: ABDFVL aims to scale digital-first brands; Kohli’s endorsement remains a key asset.
- Use of Funds: Offline expansion (to 150 stores) and e-commerce enhancements.
- Future Raise: Discussions for $60-100 million at unicorn valuation in H1 2025.
Outlook: Navigating Losses Toward Profitability
WROGN eyes FY26 recovery with 20% revenue growth, per internal targets, leveraging IPL 2025 and festive sales. However, EBITDA margins at -6% demand cost discipline. As Kohli’s net worth hits ₹1,050 crore, WROGN’s turnaround is pivotal for his portfolio.
Conclusion: WROGN’s ₹75 Crore Loss Amid Funding Boost
Virat Kohli-backed WROGN’s ₹75 crore FY25 loss reflects apparel headwinds, but ₹75 crore funding signals resilience. With marketing up 63% and revenue down 9%, scale is key. For fashion investors, it’s a high-risk bet—will Kohli’s star power propel profits? The runway awaits. ET
