Monk Entertainment (Monk-E), co-founded by YouTuber Ranveer Allahbadia (BeerBiceps) and Viraj Sheth, reported Rs 97.8 crore in revenue for FY24, reflecting a 2.2% growth from the previous year. While profitability improved significantly, the numbers highlight the challenges of scaling an influencer-driven business amid shifting brand priorities and rising costs.

Flat revenue, rising costs

Monk-E’s revenue remained largely India-centric, contributing 86.6%, with international markets making up the rest. However, the slow revenue growth comes as brands increasingly scrutinize ROI on influencer marketing, potentially limiting future expansion.

Despite a 2% decline in influencer marketing expenses, which stood at Rs 77.4 crore, total costs rose to Rs 92 crore, driven by a 38% surge in employee expenses to Rs 7.7 crore. Other major expenses included commissions, legal fees, rent, and advertising.

Notably, Rs 7.77 crore was paid to BeerBiceps Media, a venture co-founded by Ranveer Allahbadia, for technical services. This internal transaction raises questions about cost structures and profit allocation in influencer-led firms.

Profitability and operational efficiency

Despite slow revenue growth, profitability surged 58.9% YoY, with net profit reaching Rs 7.23 crore. Monk-E maintained operational efficiency, spending Re 0.94 to earn Re 1, while recording an EBITDA margin of 7.86% and a ROCE of 35.4%.

Financially, the company held Rs 28.46 crore in current assets, including Rs 5.5 crore in cash and bank balances, ensuring stability despite increased spending.

Influencer-led businesses and reputational risks

Monk-E’s dependence on Ranveer Allahbadia’s brand and network has been a core strength but also a potential liability. His recent controversial remarks have sparked backlash, raising concerns over how public perception could impact the company’s performance.

Unlike traditional firms, where leadership controversies may have a limited direct impact, influencer-driven businesses are more vulnerable to public sentiment and advertiser confidence. As brands become more cautious in their marketing spends, Monk-E’s ability to separate individual reputation from business performance will be crucial for its long-term sustainability.