Bengaluru-based skincare label Deconstruct has officially stepped into the black. The brand announced on Tuesday that it wrapped up FY25 as a profitable business, clocking Rs 130 crore in revenue—a massive leap from Rs 15.46 crore in FY24.

This sharp revenue jump—almost nine times last year’s figure—comes on the back of smarter marketing spends, tighter operations, and a sharp eye on costs. According to the company, net revenue grew in double digits after adjusting for one-time expenses, while marketing returns improved and Customer Acquisition Costs (CAC) came down significantly.

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“We’ve hit a big milestone this year, but we see this as just the beginning,” said Malini Adapureddy, Founder and CEO of Deconstruct, in a statement to PTI. “The growth we’ve seen reflects the confidence our customers have placed in us. Our goal is to keep building on this momentum with authenticity and purpose.”

Looking ahead, the company has ambitious plans. Deconstruct is targeting an annualised net revenue of Rs 500 crore by FY26. To hit that number, the brand is ramping up R&D, exploring global markets, and expanding offline with kiosk and shop-in-shop formats.

Backing these expansion plans is fresh capital—Rs 65 crore recently raised from L’Oréal’s venture arm BOLD, V3 Ventures, and DSG Consumer Partners. The funding will be used to widen distribution and strengthen the brand’s presence on Quick Commerce platforms like Blinkit, Zepto, Instamart, and Swiggy, where revenue has reportedly been surging at a rate of 200% month-on-month.

The brand also plans to widen its product range. While it has made a name for itself in serums and sunscreens, Deconstruct is eyeing new categories that can bolster its foothold in the skincare space.

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With profitability now in hand, Adapureddy says the focus is on sustainable scaling—both at home and abroad. “Staying profitable isn’t just a financial goal. It gives us the freedom to grow without compromising on what we stand for.”

Despite the broader retail market showing signs of fatigue, online-first brands aren’t slowing down. Direct-to-consumer (D2C) businesses recorded a 14.5% increase in order volumes between January and March, according to new figures from GoKwik. It’s a clear sign that shoppers are still turning to digital storefronts, even as traditional consumer spending shows strain.

One of the subtle shifts this quarter came in how people chose to pay. Prepaid orders ticked up by 3%, with UPI continuing to dominate as the go-to option. Credit card usage, on the other hand, stayed flat—suggesting that while customers are happy to spend, they’re doing so with caution.

Gender dynamics are also evolving. Men still drive most of the transactions, but their share dipped by 2% compared to the previous quarter. Women, meanwhile, are shopping more, especially across categories that blend lifestyle and practicality—indicating that female shoppers are becoming a more engaged and growing segment in the D2C space.

Even with more orders being placed, average spending per order saw a small dip—down 1.5%. Prepaid orders had a sharper drop in average value at 2.5%, while cash-on-delivery (COD) remained unchanged. This hints at a shift in consumer behavior: people are still shopping, just more mindfully—choosing utility over indulgence.

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When it comes to categories, fashion and beauty/personal care led the charge in Q3, each making up 25% of total orders, driven by end-of-year gifting and seasonal updates. But in Q4, fashion dropped to 22%, while beauty maintained its ground. It shows that beauty products are increasingly seen as everyday essentials, whereas fashion still leans more toward special occasions.

Other categories like electronics, footwear, and home décor naturally saw a bit of a breather after the festive season.

“Seeing Q4 outpace Q3—despite it being a non-festive quarter and the overall market facing a demand crunch—says a lot about how deep the D2C model has rooted itself,” said Chirag Taneja, Co-Founder & CEO of GoKwik. “Customers are coming back because they trust the product, the service, and the brand itself. That kind of loyalty is what every D2C brand has been trying to earn.”

Looking at geography, Tier 3 towns continued to make the most purchases, followed by Tier 1 and Tier 2 cities. But when it came to how much people were spending, Tier 1 stayed in the lead—even though its average order value (AOV) slipped slightly from Rs 1359 to Rs 1309.

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Tier 2 cities showed signs of picking up steam, with their AOV rising from Rs 1274 to Rs 1311—a signal that shoppers there are becoming more confident and willing to spend a bit more. Tier 3 stayed stable, reinforcing its image as a value-driven segment, though one that’s gradually gaining strength, as echoed by Nuvama’s outlook on rural demand.