Mokobara, an Indian direct-to-consumer luggage and travel accessories brand, nearly doubled its operating revenue to ₹230 crore in FY25, driven by stronger domestic travel demand, premiumisation of luggage choices and wider distribution across online and offline channels.
Core business and revenue mix
The company’s primary sales come from suitcases, backpacks, handbags and travel accessories, with a design-led positioning aimed at urban millennials and frequent travellers. Alongside operational revenue, interest and other income lifted Mokobara’s total income for FY25 to about ₹240 crore, underscoring heightened market traction and improved brand recall.
Rising costs dent profitability
Despite robust top-line growth, expenses rose faster than revenue. Total expenditure jumped to ₹251 crore in FY25 from ₹123 crore a year earlier. Procurement costs were the largest component, exceeding ₹100 crore as inventory was scaled up to meet demand.
Advertising and marketing outlays increased substantially as Mokobara invested in brand visibility across digital and offline channels. Employee benefits, logistics and warehousing costs also rose in line with business expansion and efforts to grow offline retail presence. As a result, the company posted a net loss of around ₹10 crore in FY25, against a loss of about ₹4 crore in FY24.
Profitability metrics and unit economics
Key profitability indicators remained under pressure: Mokobara recorded a negative EBITDA margin and a negative return on capital employed, reflecting an investment-heavy growth phase. On a unit-economics basis, the company spent marginally more than ₹1 to earn every ₹1 of revenue, signalling the need to improve operational efficiencies and optimise marketing spend to move toward sustained profitability.
Liquidity and funding
Financially, Mokobara ended FY25 with healthy liquidity — over ₹70 crore in cash and bank balances and substantial current assets — providing a reasonable runway for expansion without immediate refinancing needs. The company has raised nearly $24 million from institutional investors to date, funds that have supported supply-chain strengthening, offline store openings and product development.
Market context and outlook
The luggage and lifestyle accessories market in India is expanding, supported by rising travel frequency, airport modernisation and increasing disposable incomes. Mokobara faces competition from established incumbents and new D2C brands, but industry watchers say the company could target roughly ₹500 crore in revenue over the next few years if it sustains growth while reining in costs.
Balancing brand-building investments with efficiency improvements will be critical as Mokobara seeks to convert rapid scale into long-term profitability and deeper market share in the premium travel-gear segment.
