Direct-to-consumer healthy snacking brand Happilo reported a 15% decline in operating revenue in FY25, even as it sharply reduced losses through aggressive cost optimisation and tighter marketing spends.
According to the annual financial statements of Happy International Pvt Ltd, its parent entity, revenue from operations declined to ₹280 crore in the fiscal year ended March 2025, compared to ₹329 crore in FY24. The company also recorded ₹2.5 crore in non-operating income, taking total income to ₹282.5 crore.
Procurement and Marketing Costs Slashed
Founded in 2016, Happilo offers dry fruits, trail mixes, nut based protein bars, dates, and muesli through online marketplaces and offline retail channels. Product sales remained its sole revenue driver during the year.
Procurement costs, which accounted for 73% of total expenditure, fell 17% to ₹212.4 crore in FY25 from ₹257 crore in the previous fiscal. Employee benefit expenses also declined 34% to ₹15.5 crore.
The most significant reduction came from advertising and promotional spending, which was cut 59% to ₹28.2 crore in FY25 from ₹69.4 crore in FY24. Other miscellaneous expenses dropped sharply to ₹6.2 crore from ₹46.2 crore a year earlier.
Overall, total expenditure declined 38% year-on-year to ₹292 crore in FY25 from ₹467.7 crore in FY24.
Losses Narrowed; EBITDA Turns Positive
Despite lower revenue, disciplined cost management enabled the Bengaluru based firm to reduce net losses by 93% to ₹9.5 crore in FY25, down from ₹136.6 crore in FY24.
Happilo also turned EBITDA positive at ₹3 crore during the year. Its EBITDA margin stood at 0.89%, while it spent ₹1.04 to earn every rupee of operating revenue.
Competitive Market Pressures Persist
The healthy snacking segment remains intensely competitive with low entry barriers and limited brand differentiation. Volatility in procurement prices particularly for imported nuts has added margin pressure across the industry.
While category demand continues to expand, pricing power remains constrained as multiple players compete for share. Faster inventory rotation and cost discipline appear to be the preferred strategy in the current environment.
Happilo has raised around $38.5 million to date, including $25 million from Motilal Oswal Private Equity in 2022. Going forward, sustained profitability and clearer differentiation may be critical for attracting fresh investor interest in a crowded D2C snacking market.
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