Traya Slips Into The Red In FY25, Posts INR 22.5 Cr Loss

Haircare solutions startup Traya has posted a net loss of INR 22.5 Cr in the fiscal year 2024-25 (FY25) from a profit of INR 8.8 Cr in FY24 despite a hefty uptick in its top line.

The startup’s operating revenue for the fiscal under review zoomed 43% to INR 338.4 from INR 236 Cr in the previous fiscal as the sales of its products continued to scale up.

Breaking down the demand of its products, the highest portion came from the “drug-topical category”, which generated INR 113.7 Cr, consisting of 33.6% of the operating revenue. Following which, ayurvedic supplements contribute 31%.

Including an other income of INR 4.6 Cr, the startup’s total income rose 44% YoY to INR 343 Cr in FY25. To note, the other income comprises profit on sale of investments, fixed deposit interest income and interest on income tax refund.

Founded in 2019 by Saloni Anand and Altaf Saiyed, Traya specialises in personalised hair care solutions, addressing individual customer hair issues through advanced technology. The startup integrates ayurveda, dermatology and nutrition to treat hair loss. It sells its products via its app, website and other major ecommerce platforms like Amazon and Flipkart.

In the customised beauty and personal care market, Traya competes with brands like Arata, Vedix, SkinKraft, and Ravel Care. Recently, the founders claimed to have served over 8 Lakh customers, with 70% of its consumer base residing in non-metro cities.

The Mumbai-based startup has secured around $12 Mn since its inception, from investors like Xponentia Capital, Fireside Ventures, Kae Capital, Stride Ventures and Whiteboard Capital.

Magnifying Traya’s Spending

In line with its revenue growth, the haircare solution provider has been facing higher costs, where its annual expenditure rose 60% to INR 365.5 Cr in the fiscal year from INR 229 Cr spent in FY24. Here is the breakdown of its overall expenses in FY25:

Employee Benefit Expenses: These expenses saw the highest increase of 134% YoY to INR 83.2 Cr in the year under review, indicating mass hiring in the fiscal under review.

Purchase Of Stock-In-Trade: At INR 80.8 Cr, costs under this head accounted for 22% of the overall expenditure. This was a rise of 37% from INR 58.9 Cr spent under this head in FY24.

Sales And Marketing Expenses: Traya spent INR 137.6 Cr, 38% of its overall expenses, to fuel marketing initiatives. On a YoY basis, the startup’s expense towards promotions increased by 41%.