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Wakefit, the furniture and home improvement startup, said its losses widened 36% to Rs 145 crore in the financial year ended March 2023 compared to Rs 106 crore last year. Meanwhile, its revenue from operations rose to Rs 812 crore, up 28% from the previous year.

The Bengaluru-based company’s total expenses surged nearly 30% to Rs 965 crore in FY23, hurt by an increase in depreciation and amortisation expenses and employee benefit costs, as per data available with the Ministry of Corporate Affairs (MCA).

Employee benefits expenditure rose to Rs 105 crore from Rs 0.91 crore in FY22, while depreciation and amortisation costs nearly doubled annually. Wakefit reported its other expenses surged 35% to Rs 334 crore compared to Rs 246 crore last year.

Founded by Chaitanya Ramalingegowda and Ankit Garg in 2016, Wakefit runs a D2C model to offer premium furniture, including mattresses, coffee tables, and bed frames, and home decor items at affordable prices.

In January, Wakefit raised $40 million (about Rs 320 crore) in a Series D funding round to widen its reach to Tier II and III markets and strengthen its supply chain. So far, it has secured upwards of $60 million (about Rs 500 crore) from marquee investors, including Investcorp, Peak XV Partners (formerly Sequoia Capital India), and Verlinvest.

The company aims to become profitable by FY24 and is eyeing a revenue of Rs 1,200 crore in the next two years.

It has also placed a strong bet on the omnichannel sales approach and wants to open nearly 30 physical stores by March and another 70 by the end of FY23, Co-founder and CEO Ankit Garg told YourStory in January. This is expected to increase revenue from offline stores to 40% from the current 10% of overall sales.