Perfora, an oral-care brand, has grown rapidly over the last three fiscal years, with revenue increasing by 30 times from Rs 1.4 crore in FY22 to more than Rs 42 crore in FY 24. This expansion has been driven by increased demand for electric toothbrushes and other oral care products. Perfora's revenue from operations increased 2.8X year on year to Rs 42.2 crore in FY24 from Rs 15 crore in FY23, according to its consolidated financial statement obtained from the ROC.

Perfora provides personalized electric toothbrushes, toothpastes, alcohol-free mouthwashes, and other related products. In fiscal year 24, Perfora's sole source of revenue remained the sale of these products. Advertising expenses were the largest cost center, increasing threefold to Rs 20.5 crore, accounting for 38% of total expenses. The cost of materials doubled to Rs 19.5 crore, while employee benefit expenses increased 2.8 times year on year to Rs 3.7 crore. Other expenses, such as administrative and operational costs, totaled Rs 10.3 crore in the previous fiscal years. Overall, the DSG-backed company's total expenses increased 2.6 times, to Rs 54 crore in FY24 from Rs 20 crore in FY23.

By the end of Financial Year 2024, Perfora's losses had more than doubled to Rs 10.6 crore from Rs 5 crore in FY23. Its Return on Capital Employed (ROCE) was -75.94%, with an EBITDA margin of -23.23%. Perfora spent Rs 1.28 per rupee of operating revenue in FY24.

At the end of FY24, the Gurugram-based firm had current assets worth Rs 24 crore, including Rs 9.6 crore in cash and bank balances. According to startup data intelligence platform TheKredible, Perfora has raised a total of $4 million in funding to date, with Sauce as its lead investor, holding a 16% stake. Co-founders Jatan Bawa and Tushar Khurana own 48.5% of the company.

Perfora is the type of bet that investors make based on personal experience, which allows for a wide range of estimates. Perfora's electric toothbrush and related products fit into that thesis, though there is very little data on actual potential. Because it is more than just a matter of affordability. While it has done well to demonstrate market potential, and the overall market is undoubtedly much larger, we believe it has not done enough to prove whatever thesis it may have started with. Either that, or a blockbuster Financial Year 2025 is desperately needed to prove the critics wrong.