Highlights
Foxtale Reports Significant Revenue Growth in FY24 Despite Increased Losses
Foxtale, a direct-to-consumer (D2C) skincare brand, has revealed a revenue of Rs 83 crore in its third complete fiscal year, concluding in March 2024. However, to achieve growth, the Mumbai-based company faced losses exceeding Rs 50 crore during this period.
According to annual financial statements obtained from the Registrar of Companies, Foxtale’s revenue from operations saw an impressive increase, soaring approximately sixfold from Rs 14 crore in FY23 to Rs 83 crore in FY24.
Company Background
Established in 2021 by Romita Mazumdar, Foxtale is committed to providing affordable skincare solutions tailored specifically for Indian skin concerns. The brand’s product line addresses various issues, including:
- Acne
- Aging
- Hyperpigmentation
Foxtale products are available for purchase on its official website as well as on prominent marketplaces such as Nykaa, Amazon, Blinkit, Flipkart, and Myntra. Last fiscal year, the sale of skincare and beauty products accounted for Foxtale’s entire revenue.
Marketing and Operational Expenditures
In pursuit of growth, Foxtale allocated Rs 50 crore towards advertising and promotional activities, representing 36% of its total costs. This expenditure experienced a substantial increase of 3.8 times in FY24. Additionally, the cost of procurement escalated by 5.8 times, reaching Rs 35 crore in the same fiscal year.
Foxtale’s employee benefit expenses, which encompass salaries, provident fund (PF), gratuity, and employee stock ownership plans (ESOPs), surged 2.8 times to Rs 20 crore in FY24. Legal, delivery, outsourced manpower, and other overhead costs contributed to an overall expenditure rise from Rs 33 crore in FY23 to Rs 139 crore in FY24.
For a detailed analysis, refer to various sources regarding the breakdown of expenses.
Financial Performance Analysis
Despite experiencing a sixfold growth in revenue, elevated advertising and employee benefit costs led to a 189% increase in Foxtale’s losses, which amounted to Rs 55 crore in FY24, compared to Rs 19 crore in FY23. On a per-unit basis, the company expended Rs 1.67 to generate each rupee of operating revenue. By the close of FY24, Foxtale’s current assets totalled Rs 69 crore, which included cash and bank balances of Rs 44 crore.
Funding and Competition
Foxtale has distinguished itself as one of the few D2C startups to secure $48 million across two funding rounds within a mere seven months. The most recent funding round, which raised $30 million, was led by Kose Corporation, a major player in the beauty products industry in Japan.
Foxtale faces competition from notable brands such as Sugar Cosmetics, WOW Skin Science, Plum, MamaEarth, Minimalist, among others.