Jaipur-based skincare startup Minimalist has been revolutionising the serum category with its focus on ingredient transparency for consumers. Founded in October 2020 by Rahul Yadav and Mohit Yadav, Minimalist positions itself as a ‘transparent beauty’ brand under Uprising Science Pvt Ltd.
Recognising a gap in the market, Minimalist initially launched a series of serums designed to address specific skin concerns, reported Yourstory. Today, the startup offers an extensive range of premium skincare and haircare products, including serums, toners, face acids, and moisturizers.
One of Minimalist’s standout features is its commitment to transparency. The brand prides itself on providing customers with complete visibility into its product formulations and ingredients. This dedication to openness has garnered significant attention and appreciation from consumers who value knowing what goes into the products they use on their skin and hair.
According to a regulatory filing with RoC analyzed by Entrackr, the startup achieved a significant milestone during the fiscal year 2022 by crossing the revenue mark of Rs 100 crore. Delving further into the numbers, Minimalist experienced a remarkable five-fold surge in product sales, with revenue jumping from Rs 21.63 crore in FY21 to Rs 108.1 crore in FY22.
While the brand’s revenue soared, the costs associated with advertisement and promotions also witnessed a notable 5.4-fold increase, reaching Rs 33.3 crore in FY22. Additionally, the cost of materials utilised amounted to Rs 28.15 crore. These expenditures, along with employee benefits and freight costs totalling Rs 5 crore and Rs 5.2 crore respectively, contributed to Minimalist’s overall expenditure, which rose significantly from Rupees 16.16 crore in FY21 to Rupees 89.7 crore in FY22.
Despite the surge in expenses, Minimalist managed to maintain a healthy profit margin. The company’s profit surged three-fold, reaching Rupees 15.85 crore in FY22.
Minimalist’s positive financial performance extends beyond profit figures. The company’s key financial indicators indicate efficient utilisation of capital investments and effective expense management. The Return on Capital Employed (ROCE) for Minimalist stood at an impressive 19.12 per cent, reflecting the brand’s ability to generate strong returns from its capital investments. Additionally, Minimalist boasted a healthy EBITDA margin of 20.05 per cent, further highlighting the brand’s operational efficiency.
On an individual unit level, Minimalist showcased excellent cost management by incurring only Rs 0.83 to generate one unit of operating revenue. This demonstrates the brand’s commitment to maximising efficiency and ensuring sustainable growth in the highly competitive beauty industry.
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