mCaffeine, a start-up specializing in direct-to-consumer personal care products, is targeting to achieve breakeven by the fourth quarter of the fiscal year 2023-2024. According to Tarun Sharma, Co-Founder and CEO, the company has experienced significant growth in operating revenues, with a substantial increase of 70-80 percent compared to its FY22 figure of INR 135.23 crore. In FY22, mCaffeine incurred a loss of INR 56.67 crore.
The D2C company has also ventured into the cosmetics sector, making its mark with the introduction of a lipstick range. They have successfully launched the cocoa kiss lipsticks range, offering customers six enticing variants to choose from.
“The beauty and personal care industry is valued at $16 billion, and is projected to reach $30 billion in the next five years. This presents a significant opportunity for multi-thousand crore brands, including ours,” he noted.
Moving ahead, the company has devised a strategy to broaden its range of offerings within the makeup and cosmetic sector. It aims to introduce a series of new products, such as concealers and various others, in the upcoming months.
Regarding the rise in revenue, the CEO attributed it primarily to the company’s expanded market share in its key categories. These categories encompass body scrub, undereye products, face wash, face serum, and seasonal offerings like body butter.
Moreover, the increase can be credited to its expansion of channels.
“Previously, we operated in 3,000 outlets, but we have now expanded our reach to 20,000 outlets. Moreover, this year, we are on track to reach a 30,000 outlets, further solidifying our market presence,” he said.
mCaffeine has set its sights on expanding its reach to 100,000 touchpoints within the next 4-5 years, with the goal of raising the offline sales’ contribution from the current 30 percent to 50 percent.
Alongside its organic growth, the company, which secured INR 240 crore in its most recent funding round, is open to exploring inorganic opportunities within the realms of cosmetics, dermatology, and male grooming.
With a strong emphasis on capturing the mass premium market, particularly among millennials and Gen Z, the company expressed its commitment to investing in various areas. This includes enhancing the team’s skills, implementing advanced technologies such as research and development (R&D), and significantly increasing marketing budgets by more than 60 percent compared to the previous year.
mCaffeine, established in 2016, boasts an extensive collection of over 95 products that are centered around the invigorating properties of caffeine. These offerings span across various categories, including body care, face care, eye care, hair care, and lip care.
