D2C skincare brand Foxtale, which hit the break-even point in Q2 of this fiscal, plans to become a Rs 1,000 crore brand at 20 per cent EBITDA in the next 5 years, Romita Mazumdar, founder of Foxtale told ETRetail in an exclusive interaction.
The brand, which clocked Rs 40 crore in revenue last fiscal, is eyeing to close this fiscal at Rs 190 crore and eyes to grow 4x in the coming 3 years.
“Within 18 months of operations, we have become a profitable brand as 50 per cent of our revenue comes from repeat users. We are a website-heavy brand and 50 per cent of our revenue comes from our own D2C website and it continues to grow at 20 per cent month on month,” she said.
The average order value for the brand on its D2C website stands at Rs 1,300 whereas CAC varies between Rs 400 to Rs 450.
Apart from this, the brand also has a presence at major marketplaces like Amazon, Flipkart, Myntra, and Nykaa, and in the offline space, it is present across more than 3,000 general trade outlets in 12 cities like Delhi, Mumbai, Kolkata, Jaipur, Ahmedabad, Baroda, Ranchi, and Mizoram to name a few.
Marketplaces and offline retail contribute to the remaining 50 per cent of the business with both contributing 25 per cent each.
“We are also evaluating opening 1-2 kiosks spanning across 500-600 sq.ft in the next 2-3 months,” she added.
The brand currently offers 12 SKUs and by this fiscal end, plans to take the SKU count to 18-20.
“We prefer to create products that solve relevant consumer problems at a price point that consumers can buy and be comfortable repeating. During our R&D process, we discovered that instead of chasing trends, consumers are chasing results, so instead of focusing on launching multiple SKUs, we prefer a high repeat rate on each product,” she explained.
At present, the brand plans to focus only on India’s growth story and for the next 1-2 years, has no plans to enter international waters.
“We are building a brand for Indian consumers and we are hopeful that the growth rates we expect and want will come from India itself,” she asserted.
In May 2023, Matrix Partners invested US$ 4 million in its Pre-Series A2. The brand plans to use it for working capital and is now aiming toward cash positivity.
It raised its seed round of Rs 5.5 crores from Kae Capital, Kunal Shah (founder of CRED), and Rohit MA (MD of Cloudnine Hospitals) in December 2021 and Kae Capital and Matrix Partners invested US$ 4 million in its Pre-Series A round in June 2022.
The brand is evaluating to raise one more round of funding for brand building and marketing.