Backed by the likes of Sequoia and Unilever ventures, homegrown skincare brand Minimalist registered a five-fold growth and crossed the Rs 100 crore revenue mark during FY22. The exemplary growth helped the company to multiply its profit by over 3X in the same period.
Founded by Mohit and Rahul Yadav, Minimalist offers products for skin and hair such as serums, toners, face acids, and moisturizers. It retails through its own website, along with e-commerce platforms like Amazon, Nykaa, Flipkart, Myntra, and others.
The sale of products, the sole source of revenue for Minimalist, surged 5X to Rs 108.1 crore in FY22 from Rs 21.63 crore in FY21, according to its regulatory filing with RoC. The company also had an interest income of Rs 3.9 crore in FY22.
Similar to other D2C skincare and beauty brands, advertisement and promotions formed 37.1% of the overall expenditure for Minimalist. This cost swelled 5.4X to Rs 33.3 crore during FY22 while the cost of materials also rose 6.4X to Rs 28.15 crore.
Its employee benefits and freight cost grew 2.1X and 3.4X to Rs 5 crore and 5.2 crore, respectively, pushing Minimalist’s total expenditure 5.5X to Rs 89.7 crore in FY22 from Rs 16.16 crore in FY21.
The Jaipur-based company has demonstrated an incredible financial performance, evident from its bottom line: its profit shot up over 3X to Rs 15.85 crore during FY22.
Moving on the ratio, its ROCE and EBITDA margin were registered positive with 19.12% and 20.05% respectively during FY22. On a unit level, the company spent Rs 0.83 to earn a single unit of operating revenue.
In a competitive landscape, Minimalist competes with multiple players, including Vineeta Singh-led company Sugar, which achieved a revenue of Rs 200 crore in FY22 but experienced a loss of Rs 76 crore. Wow Skin Sciences, on the other hand, posted a revenue of Rs 340 crore during FY22, with a substantial loss, whereas the IPO-bound Mamaearth reported a revenue of Rs 943 crore.
