Its parent company, Body Cupid Pvt Ltd, saw a 10% drop in operating revenue to Rs 233.4 crore in 2023-24, down from Rs 258.1 crore in the previous fiscal, according to the company’s financials sourced from business intelligence firm Tofler.
Concurrently, the company’s net loss decreased to Rs 130.2 crore from Rs 213.5 crore during this period.
For 2021-22, the company had reported an operating revenue of Rs 340.3 crore and net loss of Rs 135.8 crore.
The reduction in losses follows the Bengaluru-based company’s efforts to curb overall expenses. In 2023-24, the company cut its expenses by 22.4% to Rs 377 crore, down from Rs 486 crore in the previous year.
Advertising and promotional expenses, in particular, saw a significant decline, falling to Rs 107 crore from about Rs 200 crore in the previous year. However, employee benefit expenses increased 35% to Rs 53.5 crore.
Discover the stories of your interest
“Our primary focus moving forward is achieving sustainable long-term growth with a clear path to profitability,” Manish Chowdhary, cofounder of Wow Skin Science, said in an emailed response to ET’s queries. “We anticipate further reduction in losses this financial year, aiming to reach near break-even in Q4 (fourth quarter) and target full profitability in the coming year… With adequate capital reserves for the short to medium term, we are well-positioned for a strong performance in 2025.”
Founded in 2014 by Manish and Karan Chowdhary, Wow Skin Science offers a range of products across skin, hair, bath and body, nutrition and wellness categories. The company last raised $48 million in 2022 from Singapore’s sovereign wealth fund GIC.
It competes with the likes of Nykaa, Mamaearth, Sugar Cosmetics, Purplle, Foxtale and MCaffeine.
The company has been expanding aggressively in overseas markets, notably the US, securing shelf space in major retail chains such as Walmart, Kroger and CVS.
In India, beauty and personal care brands are seeing a surge in sales through quick commerce platforms such as Zomato-owned Blinkit, Swiggy Instamart and Zepto, as well as through their own rapid delivery channels.
On October 9, ET reported that Nykaa had launched a 10-minute delivery pilot in Borivali, Mumbai, as quick commerce gained momentum across multiple product categories like beauty and personal care.
“Domestically, we’ve seen substantial growth in modern trade and quick commerce channels, and we’re committed to doubling down on these avenues to drive future expansion. We are also prioritising our innovation pipeline, with a new and improved range of skincare and healthcare products,” Chowdhary said.
The company’s financial performance comes as several domestic beauty brands like Foxtale and marketplaces that also sell their own brands, such as Purplle, have shown significant growth over the past year, attracting investment from venture capital and private equity funds.
Recently, Mumbai-based Purplle said it had extended its latest funding round led by Abu Dhabi Investment Authority by Rs 500 crore to make a final close at Rs 1,500 crore (around $180 million). In recent months, skincare firm Foxtale and haircare brand Traya raised funds from Panthera Growth Partners and Xponential Capital, respectively.
Industry experts feel that several Rs 400-500 crore beauty brands will emerge in India, even as large players such as Nykaa, Myntra, Reliance’s Ajio and Tira ramp up their presence in the beauty sector, ET earlier reported.
Also Read: Myntra gained market share, scaling beauty and home decor: CEO Nandita Sinha
Romita Mazumdar, founder of Foxtale, earlier said the company aimed to close 2024-25 with revenue of Rs 400-450 crore, with plans to achieve earnings before interest, taxes, depreciation and amortisation profitability. Similarly, Purplle reported a 43% increase in operating revenue to Rs 680 crore for 2023-24, up from Rs 475 crore in the previous year.