Pureplay Skin Sciences Ltd, the maker of beauty products under the brand name Plum, reported a significant 71.3% year-on-year growth in its total revenue for the 2022-23 fiscal year, amounting to INR 322.3 crore. Despite this positive revenue trend, the company also reported a widening net loss at a comparable rate.
In the financial year 2022-23, the net loss rose by 66% to INR 52.9 crore, compared to INR 31.8 crore in the previous year.
The Mumbai-headquartered company registered a total revenue of INR 188.1 crore for the fiscal year 2021-22, primarily driven by product sales on its platform. Demonstrating a substantial growth, its operating revenue surged by 67.8% year-on-year, reaching INR 309 crore.
The expenses for the fiscal year 2022-23 totaled INR 375.5 crore, marking an increase from INR 218.7 crore in the previous year.
Advertising and promotional activities constituted 42.7% of the overall expenses, totaling INR 160.5 crore. Additionally, noteworthy expenditures encompassed employee benefits at INR 31.2 crore, information technology expenses at INR 20.8 crore, and transportation costs amounting to INR 13.0 crore.
The company’s revenue growth aligns with a comparable pattern observed in direct-to-consumer beauty and personal care enterprises. For example, Sugar Cosmetics, an omnichannel beauty company, experienced a remarkable 90% increase in revenue, reaching INR 428.4 crore in the fiscal year 2022-23. Pilgrim, a beauty and personal care company, saw a more than fourfold surge in operating revenue to INR 76.46 crore. Platforms dedicated to selling such products also thrived, as evidenced by Purplle, an online beauty products retailer, which reported a substantial 116% rise in revenue from operations, reaching INR 475 crore in 2022-23.
The industry is capitalizing on a surge in the adoption and demand for beauty and personal care products throughout the nation. As per a collaborative study conducted by Redseer Strategy Consultants and Peak XV Partners, the beauty and personal care market in India is anticipated to achieve a compound annual growth rate of 10% from 2022 to 2027, outpacing global markets and reaching a valuation of $30 billion.
This year, the industry experienced notable funding events, with Pilgrim securing $20 million in a funding round led by Vertex Ventures Southeast Asia and India. Additionally, Purplle successfully concluded a funding round of $40-50 million, comprising both primary and secondary transactions, maintaining a consistent valuation of $1.1 billion, with participation from entities such as Abu Dhabi Investment Authority.
The strong also come at a time when Honasa Consumer Ltd, the parent company of the personal care brand MamaEarth, listed following an initial public offering on October 31. The firm reported a 93% growth in its net profit to INR 29.4 crore for the quarter ended September, on operating revenue of INR 496 crore.
Continue Exploring: Mamaearth IPO Set for October 31, Price Band at INR 308-324/Share
Plum secured its latest funding of $35 million in a round led by A91 Partners, with ongoing support from existing investors Unilever Ventures and Faering Capital. Established in 2013 by Shankar Prasad, the company specializes in offering vegan, toxin-free beauty products spanning skincare, haircare, personal care, and makeup.