Minimalist, a prominent direct-to-consumer skincare brand based in Jaipur, has announced a significant milestone, reporting a remarkable revenue of Rs 350 crore for the fiscal year 2024. This achievement marks an impressive 89% growth compared to the previous year. The four-year-old startup also managed to double its profits during this period, solidifying its status as one of India’s fastest-growing D2C brands.
Strong Revenue Performance
According to consolidated financial statements sourced from the Registrar of Companies, Minimalist’s revenue from operations climbed to Rs 347 crore in FY24, up from Rs 184 crore in FY23. The brand also generated Rs 2.16 crore from non-operating activities, bringing its total revenue for the fiscal year to Rs 349.56 crore. This remarkable growth underscores Minimalist’s effective market strategy and consumer appeal.
Founded by Mohit and Rahul Yadav, Minimalist specializes in skin and hair care products, offering an extensive range that includes serums, toners, and moisturizers. The brand sells its products through its website and various third-party e-commerce platforms, including Amazon, Nykaa, and Flipkart.
Strategic Marketing Investments
In line with its growth trajectory, Minimalist allocated a substantial portion of its budget to marketing and promotion. The company invested 35% of its expenditures in this area, with advertising costs nearly doubling to Rs 117 crore in FY24, compared to Rs 65 crore in FY23. This strategic marketing push coincided with an 88.1% increase in material costs, which rose to Rs 94 crore from Rs 50 crore in the previous fiscal year.
Minimalist’s total expenses surged by 84.1%, reaching Rs 331 crore in FY24, up from Rs 180 crore in FY23. This increase in costs reflects the company’s commitment to maintaining quality while expanding its operations.
Profit Growth Amid Rising Costs
Despite the significant rise in expenses, Minimalist achieved a twofold increase in profits, reaching Rs 10.83 crore in FY24, compared to Rs 5 crore in FY23. According to TheKredible, the company’s EBITDA margin and return on capital employed (ROCE) stood at 4% and 9%, respectively, showcasing efficient operational management.
On a per-unit basis, Minimalist spent Re 0.95 to generate a rupee of operating revenue in the last fiscal year, indicating effective cost management.
Future Outlook
Having raised approximately $17 million to date, including a Series A round led by Peak XV (formerly Sequoia Capital), which holds a 27.9% stake, Minimalist’s future looks promising. The startup was last valued at Rs 565 crore ($75 million), approximately 1.6 times its revenue in FY24. With plans to shift its focus more towards skincare, the brand aims for continued growth and innovation.
As Minimalist prepares for its next funding round, it remains to be seen how this will impact its margins and growth trajectory. The company’s successful past suggests it may continue to surprise investors and consumers alike.
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