Foxtale is a direct-to-consumer skincare and beauty brand that showcased impressive growth in FY25 as it expanded dynamically. The Mumbai-based company, however, continues to face losses attributed to a significant rise in expenses. As stated in its financial reports submitted to the Registrar of Companies (RoC), Foxtale’s operational revenue surged 2.4 times, reaching Rs 199 crore in FY25 compared to Rs 83 crore in FY24. Established in 2021 by Romita Mazumdar, Foxtale is dedicated to providing affordable skincare solutions specifically formulated for Indian skin, addressing concerns like acne, aging, and hyperpigmentation.
Foxtale’s revenue was solely generated from the sale of skin and beauty products throughout the fiscal year. When including additional income of Rs 7 crore, the total income for the company amounted to Rs 206 crore during FY25.
On the expenditure front, advertising costs made up 38% of total expenses, which more than doubled to Rs 106 crore in FY25 from Rs 50 crore in FY24. Similarly, the cost of materials rose to Rs 74 crore in FY25, compared to Rs 34 crore the previous year. Furthermore, employee benefit expenses escalated by 55%, reaching Rs 31 crore during this period. Overall, Foxtale’s total expenses more than doubled to Rs 279 crore in FY25 from Rs 139 crore in FY24. For a more detailed breakdown of expenses, refer to various sources.
The company’s net loss grew by 38%, increasing to Rs 73 crore in FY25 from Rs 55 crore in FY24. Despite this, its return on capital employed (ROCE) and EBITDA margin improved to -26.87% and -39.20% respectively.
On a per unit analysis, Foxtale spent Rs 1.40 to generate a rupee of operational revenue in FY25, an improvement from Rs 1.67 in the previous fiscal year. The company’s cash and bank balance saw a rise to Rs 166 crore in FY25, up from Rs 43 crore in FY24, while current assets increased to Rs 316 crore.
As reported by various sources, Foxtale has successfully secured a total funding of $52 million to date, with Matrix Partners and Kae Capital acting as key investors. The company’s founder and CEO, Romita Mazumdar, retains a 34% ownership stake in the business.
Foxtale recently announced that around 50% of purchases made through its D2C website are from repeat customers. The brand also expressed confidence in achieving an Annual Recurring Revenue (ARR) exceeding Rs 700 crore in Gross Merchandise Value (GMV) by the end of the year and anticipates reaching profitability in the next year.