RENÉE Cosmetics’ revenue soars 2X to Rs 200 Cr in FY24

RENÉE Cosmetics, a new-age beauty brand, doubled its sales and approached the Rs 200 crore mark in FY24. However, this growth came at a cost; due to heavy cash burn on promotions, its losses also deepened by 88% during the fiscal year ending March 2024.

RENÉE Cosmetics’s revenue from operations surged to Rs 191.65 crore during FY24 in contrast to Rs 97.15 crore in FY23, its consolidated financial statements filed with the Registrar of Companies show.

Founded by Aashka Goradia Goble along with Beardo co-founders Priyank Shah and Ashutosh Valani, RENEE offers eye makeup, lip colors, skin serums, and highlighters. Apart from selling on third-party e-commerce and quick commerce platforms, the firm also has a presence of over 650 shop-in-shop stores across India, as of June 2024.

The firm also earned Rs 8.5 crore from interest and gains on financial assets, bringing its overall revenue to Rs 200 crore in FY24.

On the expense side, advertising and promotions were the largest cost element forming 38.8% of the total expenditure. This cost surged 70.6% to Rs 102.51 crore from Rs 60.1 crore in FY23. Cost of materials and employee benefit expenses jumped over 2X to Rs 52.44 crore and Rs 31.67 crore, respectively. The employee benefit expenses also include ESOP costs worth Rs 1.37 crore during the year.

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The total expenditure of the company hiked 81.6% to Rs 264 crore in FY24 from Rs 145.38 crore in the previous year. Followed by the cash burn, RENÉE Cosmetics’ losses went up 88.2% to Rs 61.45 crore in FY24 against Rs 32.66 crore reported in FY23.

The operating cash outflows of the company also increased 17.2% to Rs 75 crore during the period. Its EBITDA margin and ROCE stood at -28.22% and -42.38%, respectively. On a unit level, RENÉE Cosmetics spent Rs 1.38 to earn a rupee of operating revenue.

According to TheKredible, RENÉE Cosmetics has raised around $46 million to date from investors, including Evolvence India, Edelweiss Group, Equanimity Ventures, and 100Unicorns. Most recently, it raised Rs 100 crore in an extended Series B round in June this year.