SUMMARY
- Ustraa saw a 2.94% drop in its revenue to Rs 94.02 crore in FY24.
- The brand saw a 25.27% rise in losses to Rs 50.32 crore in FY24.
- Total expenses stood at Rs 144.6 crore in FY24.
Men’s grooming startup Ustraa saw a 2.94% drop in its revenue to Rs 94.02 crore in FY24 from Rs 96.87 crore in FY23, as detailed in its annual financial statement submitted to the Registrar of Companies.
95.08% of the total revenue was derived from product sales, which experienced a 5.1% decrease from the previous year. The company managed to earn an additional Rs 4.7 crore from various other sources, bringing its total income to Rs 94.27 crore over the fiscal year.
The largest category was material costs, which increased by 63.16% to Rs 60.4 crore. Employee benefit costs dropped by 17.5% to Rs 20.94 crore. There was also a notable drop in advertising expenses by 64.46% to Rs 17.09 crore. Commission expenses rose by 43.82% to Rs 10.93 crore. Total expenses stood at Rs 144.6 crore, marking a 5.11% increase from Rs 137.57 crore in FY23.
The brand saw a 25.27% rise in losses to Rs 50.32 crore in FY24 from the loss of Rs 40.17 crore in FY23.
The company’s ROCE and EBITDA margin were 284.01% and -51.16%, respectively. On a per-unit basis, Ustraa spent Rs 1.54 to generate a rupee of operating revenue in FY24.
Ustraa’s cash and cash equivalents were recorded at Rs 6.89 crore in the year under review, up from Rs 1.17 crore in FY23. No other bank balances were reported for FY24, and the trade receivables for Ustraa amounted to Rs 7.46 crore in the fiscal year.
Established in 2015, Ustraa offers a range of products including fragrances, hair care, face care, and beard care. Following its acquisition, the founders, Rahul Anand and Rajat Tuli, continued to contribute to the brand while also heading VLCC’s D2C initiatives.
Ustraa was acquired by the personal care brand VLCC through a share swap and secondary buyout in Q1 FY24. However, Ustraa faced a slight decline in revenue and an increase in losses.
Before the acquisition, Ustraa had secured over $10 million in funding from various sources, including Info Edge, Wipro, and IIFL, among others. The brand directly competed with Beardo, The Man Company, and Bombay Shaving Company. All these competitors are operating at a loss, either by joining a larger entity or by selling a significant portion of their stake to a major corporation.
Bombay Shaving Company posted Rs 182 crore in revenue in FY23 and aimed to take it to Rs 260-280 crore in FY24. Beardo saw a 12.2% rise in its revenue for FY23 to Rs 106.6 crore, while The Man Company posted Rs 115 crore in revenue for FY23. Their audited FY24 financial statements are yet to be released.
