Wow Skin Science Reduces Losses, Eyes Profitability by 2025

Wow Skin Science, a well-known beauty and personal care brand, has made significant strides in reducing its financial losses despite experiencing a dip in revenue for the second year in a row. In the fiscal year ending March 2024, the company managed to cut losses by nearly 40%, a crucial step toward achieving profitability by 2025.

The Bengaluru-based company reported a 10% drop in operating revenue, bringing it down to Rs 233.4 crore, compared to Rs 258.1 crore in the previous fiscal year. This decline comes as Wow Skin Science’s parent entity, Body Cupid Pvt Ltd, continues to navigate the impact of changing market dynamics. Yet, despite these challenges, the company successfully slashed expenses by 22.4% to Rs 377 crore, a significant reduction from Rs 486 crore in the prior year, according to financial data sourced from Tofler.

One of the most notable cuts was in advertising and promotional spending, which fell drastically to Rs 107 crore from nearly Rs 200 crore the previous year. However, employee benefit expenses rose by 35% to Rs 53.5 crore, highlighting the company’s investment in its workforce.

Co-founder Manish Chowdhary expressed optimism about the brand’s future, stating, “Our primary focus moving forward is achieving sustainable long-term growth with a clear path to profitability.” He added that they aim for further reductions in losses this year, with plans to reach near break-even in the fourth quarter and become profitable by next year. He also noted that Wow Skin Science has “adequate capital reserves” to support this vision, positioning the brand for a robust performance by 2025.

Founded in 2014 by Manish and Karan Chowdhary, Wow Skin Science offers a diverse lineup of skin, hair, bath and body, nutrition, and wellness products. The company last secured $48 million in funding in 2022 from Singapore’s GIC, and it has been aggressively expanding internationally, particularly in the U.S. market, where its products are sold in Walmart, Kroger, and CVS.

Domestically, Wow Skin Science has also been leveraging the boom in quick commerce platforms like Blinkit, Swiggy Instamart, and Zepto. The beauty industry is rapidly evolving, and brands are tapping into these platforms to meet the demand for fast delivery services. Nykaa, a key competitor, recently launched a 10-minute delivery service in Mumbai, underscoring the importance of speed in the sector.

Wow Skin Science is also focusing on modern trade channels and expanding its innovation pipeline. “Domestically, we’ve seen substantial growth in modern trade and quick commerce channels, and we’re committed to doubling down on these avenues,” Chowdhary stated. The brand is preparing to introduce a new range of skincare and healthcare products to drive further growth.

Despite Wow’s revenue dip, the broader beauty and personal care market in India is thriving. Companies like Foxtale and Purplle have shown impressive growth and attracted significant investment. Purplle, for instance, saw a 43% increase in operating revenue to Rs 680 crore and secured funding from the Abu Dhabi Investment Authority, raising Rs 1,500 crore.

With experts predicting the rise of several Rs 400-500 crore beauty brands in India, competition is intensifying as Nykaa, Myntra, Ajio, and Tira ramp up their efforts. As Wow Skin Science continues to innovate and expand, it remains a key player to watch in this dynamic market.