SUMMARY
WOW Skin Science’s operating revenue rose 3.4X to INR 340.37 Cr from INR 99.83 in FY21
The D2C brand’s total expenses skyrocketed 4.4X to INR 479.77 Cr from INR 108.58 Cr in FY21
WOW Skin Science spent INR 1.4 to earn every INR 1 in FY22
Bengaluru-based D2C skincare brand WOW Skin Science reported a 15.5X jump in its net loss to INR 135.83 Cr in the financial year 2021-22 (FY22) from INR 8.78 Cr in FY21 as the growth in its expenses outpaced the rise in revenue.
The total revenue of Body Cupid Private Limited, the parent company of WOW Skin Science, rose 3.4X to INR 343.94 Cr in FY22 from INR 99.83 Cr in FY21. Operating revenue also increased 3.4X to INR 340.37 Cr from INR 99.83 Cr in FY21, as per Body Cupid’s filings with the Ministry of Corporate Affairs.
Besides WOW Skin Science, Body Cupid also operates BuyWOW and WOW Life Sciences.
Meanwhile, total expenses skyrocketed 4.4X to INR 479.77 Cr in FY22 from INR 108.58 Cr in FY21, led by a surge in employee benefit expenses. WOW Skin Science spent INR 1.4 to earn every INR 1 during the year under review.
The D2C startup’s employee benefits expense jumped 8.3X to INR 19.28 Cr from INR 2.33 Cr in the previous year. Employee benefit expenses generally comprise employee salaries, PF contributions and gratuity, among other benefits.
On the other hand, other expenses, including spending on fuel, rent, R&D, IT, legal fees, transportation, packing, commission paid to sole selling agents and advertising, were the biggest contributors to total expenses. The D2C startup reported other expenses of INR 278.93 Cr in FY22, up 4X from INR 69.57 Cr in FY21.
Advertising and promotional expenses too surged 4.3X to INR 188.76 Cr from INR 43.90 Cr in FY21, while the purchase of stock-in-trade increased 2.4X to INR 164.76 Cr from INR 69.46 Cr in the previous fiscal.
The D2C startup was last profitable in FY20 when it recorded a profit of INR 9 Lakh on operating revenue of INR 6.5 Cr. However, WOW Skin Science has seen its expenses balloon since FY21, and with them, its loss.
Founded in 2014 by Manish and Karan Chowdhary, WOW Skin Science offers products across skin, hair, bath and body, wellness and nutrition and health. It competes with the likes of Nykaa, Mamaearth, SUGAR Cosmetics, and mCaffeine.
The startup last raised $48 Mn from Singapore’s GIC in June 2022. It has raised a total funding of $125 Mn across multiple rounds to date.
