SUMMARY
- mCaffeine, India’s first caffeinated personal care brand, was founded by Tarun Sharma and Vikas Lachhwani in 2016.
- The idea for this personal care brand, mCaffeine, began with a tea bag.
- The company aims for an 80% growth rate by 2024, with a valuation of $87.4 million.
Have you ever wondered if a simple home remedy could inspire an idea that can transform into a multibillion-dollar business? It Is indeed possible. The story begins in 2015 when Tarun Sharma, a young software engineer working for a food delivery startup, experienced an accident that caused his eyes to swell. Someone advised him to use a lukewarm green tea bag on his eyes to reduce the puffiness; at first, Tarun was tentative, but later, he applied the tea bag to his eyes, and miraculously, his problem disappeared. Caffeine’s benefits sparked his interest, so he looked into it further. He started researching, and while researching, he discovered online literature that stated that caffeine is very nourishing for the skin. He also identified the gap in the market and realised that the current generation needs a high-quality and effective personal care brand, and only a few emerging brands can address the demand.
He discussed this with his old friend Vikas Lachhwani, who previously worked in Bentonville, USA, where he was employed with one of the world’s largest retailers, studying promotion and product stocking strategies for several years.
In 2015, they decided to quit their jobs and become entrepreneurs, and in 2016, along with two more co-founders, Vaishali Gupta and Mohit Jain, the journey of India’s first caffeine-infused personal care brand, mCaffeine, started. They began their product journey by creating caffeine-based shampoos.
Initially, they marketed their items at a local salon in Mumbai to measure client response. After that, they choose platforms such as Amazon, Flipkart, and Snapdeal to sell their product online. Currently, mCaffeine is developing a variety of products. Their products include coffee-based shower gel, face wash, shampoo, body scrub, face scrub, hand cream and lip balm. Each product contains the aroma and nutrients of coffee, which gives health and vitality to the skin and hair.
Recently the brand introduced an Employee Stock Ownership Plan (ESOP) for dedicated employees, allowing them to directly benefit from the brand’s growth. Partnered with GoKwik to enhance the online shopping experience and drive revenue growth, ensuring better shopper satisfaction and increased revenue.
In FY20, the startup recorded a revenue of INR 40.3 crore with a loss of INR 5.5 crore. The following year, FY21, the revenue jumped to INR 66.51 crore, a 65% growth compared to 2020, but losses also grew to INR 8.29 crore. By FY22, revenue more than doubled to INR 135.2 crore, reflecting a 103% increase, while losses surged to INR 56.67 crore, demonstrating the costs of scaling. In FY23, revenue continued to scale to INR 210.1 crore, with a growth rate of 51.8% with losses increased at INR 92 crore. Looking ahead to FY24, the company aims for an 80% growth rate, targeting revenue of INR 700 crore, and has reached a valuation of $87.4 million, backed by total funding of $50.6 million.
The brand plans to expand internationally in the next three years. Intending to become an iconic luxury brand from India, it has already entered Nepal and the Maldives and is currently preparing to launch in 20 countries, including the GCC market, which includes Bahrain, Kuwait, Oman, and so on. mCaffeine aims to expand globally in addition to going offline, launching 15 to 20 new items in the upcoming year, and investing in brand building and acquisitions, as they haven’t yet made any notable investments and acquisitions. The company competes with famous brands like Plum, Lotus Herbals, Revlon, WoW Skin Science, and Mamaearth.
