The firm saw its net loss widen 66% to Rs 52 crore in FY23, compared to the Rs 32 crore it incurred in FY22. The firm had reported a total revenue of Rs 188 crore in FY22, with product sales on its platform contributing the majority of the income. Plum’s operating revenue grew 68% year-on-year to reach Rs 309 crore.
Total expenses for the firm were at Rs 375 crore in FY23, up from the Rs 219 crore it spent in FY22.
Advertising and promotions were the biggest component of total costs, amounting to Rs 160 crore in FY23, and constituting 42% of the company’s total expenses. Other notable expenses included employee benefit costs of Rs 31 crore, information technology expenses of Rs 21 crore and transportation cost of Rs 13 crore.
Plum’s topline expansion mirrors a similar trend across D2C beauty and personal care brands. For instance, omnichannel beauty brand Sugar Cosmetics saw a revenue growth of 90% to Rs 428 crore in FY23.
On the other hand, beauty and personal care brand Pilgrim’s operating revenue jumped over four times to Rs 76 crore in FY23. Beyond brands, even platforms selling such products have benefited, with online beauty products retailer Purplle seeing a 116% increase in revenue from operations to Rs 475 crore in FY23.
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The sector has been benefiting from an increased uptake in and demand for beauty and personal care products from across the country. According to a joint study by Redseer Strategy Consultants and Peak XV Partners, India’s beauty and personal care (BPC) market is projected to grow at a compounded annual growth rate (CAGR) of 10% between 2022 and 2027, surpassing global markets, to reach a size of $30 billion.This year, the sector also saw some funding activity as Pilgrim raised $20 million in a funding round led by Vertex Ventures Southeast Asia and India. On the other hand, Purplle closed a $40-50 million funding round, split between primary and secondary transaction, at a flat valuation of $1.1 billion from the likes of Abu Dhabi Investment Authority.
The strong results also come at a time when Honasa Consumer Ltd, the parent company of personal care brand MamaEarth, listed itself in an initial public offering (IPO) on October 31. The firm reported a 93% growth in its net profit to Rs 29 crore for the quarter ended September 2023, on operating revenue of Rs 496 crore.
Plum last raised funding in a $35 million round led by A91 Partners, with existing backers Unilever Ventures and Faering Capital also participating. Founded in 2013 by Shankar Prasad, Plum specialises in vegan, toxin-free beauty products across skincare, haircare, personal care, and makeup.