Traya returns to losses in FY25 as marketing and employee costs surge

Direct-to-consumer (D2C) health and wellness brand Traya posted a strong 43.2% year-on-year growth in FY25. However, the company slipped back into losses during the year as rising expenses offset the momentum it had built in FY24.

Traya’s revenue from operations increased to Rs 338 crore in FY25 from Rs 236 crore in FY24, according to its annual financial statements sourced from the Registrar of Companies (RoC).

Founded in 2019, Traya focuses on addressing hair loss by identifying its root causes rather than offering surface-level solutions. The company provides personalised hair treatment plans, supported by consultations with hair coaches and licensed physicians.

Income from ayurvedic oral and topical products, cosmetics, dietary supplements, and medicines remained the primary revenue driver, accounting for 99.6% of its total operating income. The remaining revenue came from shipping charges, doctor consultations, and hair transplant services.

On the cost side, Traya significantly ramped up its spending in FY25. Its sales and marketing expenses rose 40% year-on-year to Rs 138 crore, reflecting continued investments in customer acquisition. Employee benefit expenses saw a sharper spike, which increased by 130% to Rs 83 crore during the fiscal year.

The cost of materials consumed stood at Rs 83 crore in FY25. Additionally, higher freight, legal, rent, and other operational overheads pushed the company’s total expenditure up by 60% to Rs 366 crore in FY25, compared to Rs 229 crore in FY24.

With expenses growing faster than revenue, primarily due to elevated marketing spends and a surge in employee costs, Traya reported a loss of Rs 23 crore in FY25. This marks a reversal from the Rs 8.6 crore profit the company had posted in FY24.

According to Entrackr’sestimates, its financial efficiency metrics also weakened during the year. Its return on capital employed (ROCE) declined to -20.47%, while EBITDA margins stood at -6.18%. At the unit economics level, the company spent Rs 1.08 to earn every rupee of operating revenue in FY25.

As per the startup data intelligence platform TheKredible, Traya has raised approximately Rs 96 crore in funding to date. This includes a Rs 75 crore infusion from Xponentia Capital in April this year. The company’s investor roster features prominent names such as Fireside Ventures, Kae Capital, Xponentia Capital, and Whiteboard Capital.

Hair loss treatments have existed for as long as hair loss itself, with a history that ranges from the spectacular to the ludicrous, and with barely any guaranteeing results. Social media has allowed the segment to bloom like never before, as sufferers feel the need to save what hair remains or recover lost ground. While non-invasive methods like those offered by Traya are one option, the rapid rise of hair transplants leads one to wonder how effective other alternatives truly are, especially since most people opting for transplants have usually tried multiple methods to avoid surgery. A five-month period to show “results” also works well for firms like Traya, as it helps lock in users.

With the pool of sufferers expanding due to stress, pollution, and other factors, selling into this market of insecurity and aspiration appears to offer a long runway for companies. Traya, of course, will know that as more users complete the five-month course and beyond, word of mouth around its effectiveness will spread. The question is whether it will pivot to something new by then?