Skincare brand Minimalist's revenue rises 89% to nearly Rs 350 crore in FY24

D2C skincare and haircare brand Minimalist has posted strong financial results for FY24, recording a total revenue of Rs 350 crore. This represents an impressive 89% year-on-year growth compared to FY23. 

Minimalist has rapidly emerged as one of India's leading D2C brands, with its profitability doubling in the past fiscal year.

According to Entrackr's report, the startup generated Rs 347 crore from operations, a significant jump from Rs 184 crore in FY23. An additional Rs 2.16 crore from non-operating activities brought the total revenue to Rs 349.56 crore. 

Product sales and expenditure patterns

The report highlighted that the Jaipur-based startup's entire revenue in FY24 was driven by the sale of its skincare and haircare products, including serums, toners, and moisturizers.

Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist sells its products through its own website and major third-party platforms such as Amazon, Nykaa, and Flipkart.

A significant portion of the brand's budget was allocated to advertising and promotions, which nearly doubled in FY24. The brand spent Rs 117 crore on marketing efforts, up from Rs 65 crore in the previous fiscal year, accounting for 35% of its total expenses.

In addition to the marketing push, the cost of materials also surged, rising by 88% to Rs 94 crore, compared to Rs 50 crore in FY23.

Rising costs but strong profitability

Despite increasing marketing and operational costs, Minimalist more than doubled its profit in FY24, reporting a profit of Rs 10.83 crore, up from Rs 5 crore in FY23.

The startup's expenses, which included employee benefits, distribution commissions, and transportation, contributed to an 84% rise in overall costs, reaching Rs 331 crore by the end of March 2024. 

Funding and investors

In July 2021, Minimalist raised Rs 110 crore in a Series A funding round led by Sequoia Capital India, Unilever Ventures, and other global investors.