D2C brand Wow Skin Science reports Rs 233.5 crore revenue in FY24; losses decline by 24%

Wow Skin Science, a direct-to-consumer (D2C) beauty and personal care brand, has faced another year of revenue decline in FY24.

According to the company's latest financial filings, its operating revenue dropped by 9.6% to Rs 233.49 crore, down from Rs 258.11 crore in FY23.

This marks the second consecutive year of declining revenue after a 23% fall in FY23.

Despite the drop in revenue, the company managed to cut its net loss by approximately 24%, reducing it to Rs 130.2 crore from Rs 213.5 crore in the prior year.

Efforts to reduce expenses pay off

The Bengaluru-based company achieved this reduction in losses by significantly curbing its expenses. Total expenditure in FY24 was reported at Rs 377 crore, representing a 22.4% decrease from Rs 486 crore in FY23.

Advertising and promotional expenses saw a steep 46% reduction, falling to Rs 107 crore from the previous Rs 200 crore. However, while most costs declined, employee benefits expenses increased by 35%, reaching Rs 53.5 crore.

Manish Chowdhary, cofounder of Wow Skin Science, said, “Our primary focus moving forward is achieving sustainable long-term growth with a clear path to profitability. We anticipate further reduction in losses this financial year, aiming to reach near break-even in Q4 and target full profitability in the coming year.”

Business operations and market presence

Founded in 2014 by Manish and Karan Chowdhary, Wow Skin Science operates through multiple channels, selling products via offline stores, its own website, and major e-commerce platforms such as Amazon, Flipkart, and Nykaa.

It encompasses brands like WOW Skin Science, WOW Life Science, Body Cupid, and Nature Derma, and recently launched a cosmetics line under the name Colour Cupid. The company's ventures also include international expansion efforts, securing shelf space in U.S. retail giants such as Walmart, Kroger, and CVS.

Despite these strategic moves, competition in the D2C beauty and personal care sector remains fierce. Wow Skin Science competes with brands like MamaEarth, Minimalist, and newer entrants such as Foxtale.

While Wow Skin reported a dip in revenue, its competitors have shown contrasting trends. For instance, Jaipur-based Minimalist reported an 89% growth in revenue to Rs 347 crore in FY24, while MamaEarth's revenue reached Rs 1,920 crore with a net profit of Rs 147 crore.

“Domestically, we’ve seen substantial growth in modern trade and quick commerce channels, and we’re committed to doubling down on these avenues to drive future expansion,” Chowdhary noted.