Ustraa, Men’s Grooming Brand, Loss Swells 25% To INR 50 Cr In FY24 from INR 40.2 Cr in FY23

Men’s grooming D2C brand Ustraa, owned by wellness brand VLCC, had its net loss increase by 25% to INR 50.3 Cr in fiscal year 2023-24 (FY24) from INR 40.2 Cr the previous fiscal year.

Rahul Anand and Rajat Tuli founded Ustraa as ‘Happily Unmarried’ in 2003, and it renamed to its current avatar in 2015 when it entered the D2C industry.

Its operating revenue fell 2.9% to INR 94 crore in the fiscal year under review, down from INR 96.8 crore in FY23.

Related: D2C Cosmetics Startup Menhood’s Records 190% Rise in Profit, Reaches INR 1.84 Cr

VLCC, a beauty and skincare company, announced the acquisition of Ustraa in June 2023 for INR 61 crore in a cash and share swap. The transaction was said to be completed at a 40% discount to the D2C startup’s previous valuation.

Almost a year before the transaction, Ustraa raised INR 16.8 crore in a strategic investment round led by Info Edge subsidiary Startup Investments in October 2022. The firm has raised a total of $10 million since its beginning.

Despite the decrease in revenue, Ustraa’s total expenses increased by 5.1% to INR 144.6 Cr in FY24 from INR 137.6 Cr in FY23.

Expenditure under this category fell 32.2% to INR 24.4 Cr during the year, from INR 36 Cr in FY23.

Ustraa spent INR 43 crore under this heading in FY24, compared to $0 the previous year.

Employee expenditures decreased 17.7% to INR 20.9 Cr in FY24, from INR 25.4 Cr in FY23.

Salaries, gratuities, and PF are some of the employee benefit expenses. The decline suggests that Ustraa may have cut its workforce during the fiscal year under consideration.

Ustraa reduced their advertising and promotional expenses by 64.4% to INR 17.1 crore in FY24, down from INR 48.1 crore the previous fiscal year.

The spending under the head increased by 8.8% to INR 10.1 Cr from INR 9.3 Cr in FY23.

Ustraa spent INR 14.8 crore under the head, compared to INR 1.8 crore in FY23. However, it did not provide a breakdown of miscellaneous charges.