Skillmatics expects revenue to double to Rs 400 crore this fiscal

Mumbai-based toy games company Skillmatics is expecting to more than double its topline to Rs 400 crore this fiscal. The company, which offers learning and play experiences to children of all ages and their families, was set up in 2017 by ex-BCG consultant Dhvanil Sheth and Devanshi Kejriwal.

Rapid growth

Skillmatics closed FY23 with Rs 188 crore revenue and has been cash positive. The company is on course to close the current fiscal with at least Rs 400 crore of revenue.It grew over 100 per cent in the first half which is the dullest season for our sector, Sheth told PTI in an interaction.

Sheth's optimism about rapid growth comes from the fast growing domestic demand which got a massive fillip after the government recently made BIS certification mandatory for toys, a move that led to a massive fall in imports from China.

Also, Sheth said the company will soon be entering Canada, Australia, and the Middle East along with Germany, France and Spain where it will be offering its products in the local languages.

Funding and stakeholding

So far, the company has raised Rs 200 crore in funding from external investors, including Sequoia Capital India and Sofina along with the Jalaj Dani of Asian Paints fame family office.

Sequoia owns 20 per cent stake in the company, Sofina holds 10 per cent equity, and the Jalaj Dani family office has a 5 per cent shareholding. The founders have a 60 per cent stake while the remaining 5 per cent is with staff through an ESOP Employee Stock Option Plan.

Market presence

Currently, 70 per cent of Skillmatics' sales come from the US, which is the world's largest toy market. Another 15 per cent each comes from England and India.

The company, which has two offices in the US in Texas and California, is also planning to have an own manufacturing facility and is planning a Rs 15 crore-unit in Daman, which should begin operation next fiscal.

Skillmatics 200-strong people design content-led games and play-centric learning resources and its products focus on building core skills such as reading and logical reasoning in children.

It sells globally via online marketplaces, on its own website and offline retailers like Walmart, Target and Hamleys. The company is currently present across 15 countries.

Skillmatics is a rapidly growing company that is capitalizing on the growing demand for educational toys. The company's products are well-designed and engaging, and they are backed by a strong team of experienced professionals. Skillmatics is poised for continued growth in the years to come.