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Hyphen’s INR 100 Cr Milestone: How D2C Brand Built A Winning Formula With mCaffeine’s Playbook

Inc42Inc42 · 10m ago
Hyphen’s INR 100 Cr Milestone: How D2C Brand Built A Winning Formula With mCaffeine’s Playbook
Medial

India's beauty and personal care (BPC) brands are experiencing rapid growth due to consumer trust, investor interest, and product innovation. It is predicted that the Indian BPC market will have the highest compound annual growth rate (CAGR) of 10% from 2022 to 2027, surpassing China and the US. By 2027, India could account for approximately 5% of the global BPC market, reaching $30 billion from $19 billion in 2022. Hyphen, a new brand launched by mCaffeine, has seen success in its first months, with plans for operational profitability by FY26 and revenue targets of INR 200 crore. BPC startups in India have raised over $1 billion in funding between 2014 and H1 2024.

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Can CHOSEN Rewrite India’s Beauty Playbook With Its Patented Skincare Solutions & LED Tech?

Inc42Inc42 · 9m ago
Can CHOSEN Rewrite India’s Beauty Playbook With Its Patented Skincare Solutions & LED Tech?
Medial

India's direct-to-consumer (D2C) beauty and personal care (BPC) industry has seen the rise of successful brands like Mamaearth, mCaffeine, and WoW Skin Science. CHOSEN by Dermatology, founded by Dr. Geetika Mittal Gupta, has joined the ranks. The brand offers tech-led skincare solutions based on Dr. Gupta's expertise in dermatology. CHOSEN focuses on creating smaller, more accessible versions of traditional skincare products, catering specifically to Indian skin. Despite production capacity constraints in 2023, the brand is actively acquiring more facilities to address stock shortages and support scaling. Other notable players in the D2C BPC space include Minimalist and Nykaa.

mCaffeine’s revenue declines to Rs 193 Cr in FY24

EntrackrEntrackr · 8m ago
mCaffeine’s revenue declines to Rs 193 Cr in FY24
Medial

Personal care and beauty brand mCaffeine consistently grew its revenue year-on-year until FY23, rising from Rs 40 crore in FY20 to Rs 205 crore in FY23. However, the company’s scale declined by 6% in the last fiscal year due to a decrease in the sales of caffeinated beauty products. mCaffeine’s revenue from operations decreased to Rs 193 crore in FY24 from Rs 205.3 crore in FY23, its annual financial statement filed sourced from the Registrar of Companies (RoC) shows. The dip in sales in FY24 comes as a surprise, as the firm’s co-founder and chief executive, Tarun Sharma, had claimed that mCaffeine would achieve a 50% increase in sales during the last fiscal, with profitability in sight for FY25. mCaffeine is a personal care brand specializing in caffeine-infused skincare and haircare products. The brand sells primarily online through e-commerce platforms and its own website. Sale of its products was the sole source of operating revenue for mCaffeine which decreased 6% to Rs 193 crore in FY24. The Powai-based company also earned Rs 8.9 crore from interest income that took its total income to Rs 201.9 crore in the fiscal year ending March 2024. Advertising costs dominated the expense sheet but decreased by 11.8% to Rs 106.17 crore in FY24 from Rs 120 crore in FY23. Employee benefit also dipped 2.8% to Rs 38.54 crore. Meanwhile, the costs of materials increased 12.5% and stood at Rs 67.67 crore. In the end, its total expense decreased marginally to Rs 287.33 crore in the last fiscal year. Akin to its scale, mCaffeine’s losses decreased by 6.8% to Rs 85.41 crore in FY24 from Rs 91.6 crore in FY23. Its ROCE and EBITDA margin stood at -240.19% and -40.42%, respectively. On a unit basis, the company spent Rs 1.49 to earn a rupee of operating revenue in FY24. The Mumbai-based company reported cash and bank balances of Rs 32 crore and current assets of Rs 108.9 crore in FY24. According to startup data intelligence platform TheKredible, mCaffeine has raised Rs around Rs 337 crore in total funding and was last valued at Rs 1,000 crore. With over 12% stake, Amicus Capital is the largest external shareholder, followed by RPSG Ventures and Paragon Partners. mCaffeine has been seeking additional funding for over a year, but the firm has not attracted interest from new or existing investors. As a result, mCaffeine is reportedly exploring acquisition opportunities due to its unsuccessful fundraising efforts. mCaffeine's competitor, Wow Skin also saw a 9.5% drop in revenue during FY24, while Minimalist achieved a 90% increase in its scale to Rs 347 crore in FY24, along with profitability. MamaEarth, now a publicly listed company, witnessed a decline in revenue in Q2 FY25. mCaffeine’s troubles were not unexpected, even if the brakes on growth are a function of its efforts to extend the runway. We have highlighted the issue with high advertising costs and lack of flagship products before, and FY24 has simply delivered proof. mCaffeine clearly faces challenges that a caffeine shot looks unlikely to solve.

Men’s ethnicwear brand Kisah secures Rs 13 Cr to expand offline and D2C biz

EntrackrEntrackr · 1m ago
Men’s ethnicwear brand Kisah secures Rs 13 Cr to expand offline and D2C biz
Medial

Men’s ethnicwear brand Kisah secures Rs 13 Cr to expand offline and D2C biz Co-founded in 2018 by Yash Sarawagi and Yashwi Ladasaria, Kisah offers high-fashion ethnicwear for Gen Z and millennials at accessible prices. Men’s ethnicwear brand Kisah Apparels has raised Rs 13 crore (1.52 million) in a pre-Series A funding round led by Wow! Momo founder Sagar Daryani, along with participation from Apoorv Salarpuria, Rahul Todi, Vinod Dugar, and Inflection Point Ventures. The proceeds will be utilized towards expanding its offline presence, scaling up direct-to-consumer (D2C) operations, and investing in brand-building, Kisah said in a press release. The Kolkata-based brand began with a marketplace-first model and is now evolving into an omnichannel brand. It currently operates two offline retail stores, with three more outlets planned across key Indian cities. “E-commerce gave us pan-India reach and deep customer insights, which are now fueling our D2C and offline growth—backed by data, customer pull, and positive cash flow at the company level,” said Yash Sarawagi, co-founder and CEO of Kisah Apparels. Kisah added that it has built internal systems to analyze data from its marketplace and D2C operations, which inform product design, sourcing decisions, supply chain efficiency, and marketing campaigns. The brand claims to have grown from Rs 40–45 crore to a run rate of over Rs 100 crore, with positive operating cash flow and PAT.

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