WOW Skin Science Narrows Loss To INR 130 Cr, Revenue Dips 10% In FY24

Body Cupid Private Limited, the company which operates D2C skincare brand WOW Skin Science, managed to narrow its net loss by nearly 39% to INR 130.2 Cr in the financial year 2023-24 (FY24) from INR 213.2 Cr a year ago, despite a degrowth in its topline.

Revenue from operations declined almost 10% to INR 233.5 Cr during the year under review from INR 258.1 Cr in the previous fiscal year, according to the company’s filing with the Ministry of Corporate Affairs (MCA). 

After reducing its loss in FY24, WOW Skin is now aiming to achieve “near break-even” in Q4 FY25 and turn profitable by 2025, its cofounder Manish Chowdhary told ET.

“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,” the publication quoted Chowdhary as saying.

Founded in 2014 by Karan Chowdhary and Manish Chowdhary, WOW Skin Science offers a range of beauty and personal care products across skin, hair, bath and body, and nutrition categories. 

The brand competes with the likes of Plum, Honasa, Good Glamm Group, The Ayurveda Co, and a host of other players in the BPC category, including new entrants such as Gabit and The Minimalist.

A Closer Look At WOW Skin’s FY24 Expenses

The Bengaluru-based startup managed to cut its overall expenses to INR 377 Cr in FY24, a more than 22% decline from INR 486.2 Cr a year ago.

Cost Of Goods: WOW Skin spent INR 94.2 Cr under this expense head in the year ended March 31, 2024, down 23.16% from INR 122.6 Cr a year ago.

Employee Benefits Expense: The startup saw its employee costs surge 35.10% to INR 53.5 Cr in FY24 from INR 39.6 Cr in the previous year.

Advertising Promotional Expense: The company’s spending in this bracket decreased 46.29% to INR 107.04 Cr during the year under review from INR 199.30 Cr in FY23.

Earlier this year, reports said that WOW Skin was in talks with investors to raise $65-75 Mn at a valuation of $400 Mn. 

According to Inc42 data, the startup has raised $98 Mn in funding so far and counts GIC and ChrysCapital among its backers.