Companies

The Derma Co eyes ₹100-crore revenue run rate by FY22

PTI New Delhi | Updated on February 14, 2021 Published on February 14, 2021

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The Derma Co, part of Honasa Consumer Pvt Ltd (HCPL) that also owns the Mamaearth brand, aims to clock a revenue run rate of ₹100 crore by March 2022 as it expands its presence across online and offline retail in the country.

Speaking with PTI, Honasa Consumer co-founder and CEO Varun Alagh said The Derma Co has been in existence for about a year in beta mode with the company engaged in product market fit and testing.

"Now, we are clearly scaling that up and seeing really good results on that front.

"In scaling Mamaearth over the last four years, we have been able to build playbooks and tools, and this gives us the confidence to diversify into creating newer brands to solve the prevailing millennial concerns," Alagh added.

He noted that consumers are warming up to specialised products and are looking for expert skincare solutions, a segment that The Derma Co can cater to.

"We already cater to a consumer base of half a million millennials across top metros, such as Delhi, Mumbai, Bengaluru, Hyderabad and Chennai. With the recent expansion into the marketplace, we are looking to democratise clinical formulations and make it accessible to everyone," he said.

HCPL is backed by investors including Sequoia Capital India, Fireside Ventures, Stellaris Venture Partners and Sharrp Ventures. While Mamaearth products focus more on natural ingredients, The Derma Co would focus on science-based ingredients. The skincare market is estimated to be worth ₹ 70,000 crore with science-based active ingredients category as a niche but fast-growing segment.

The Derma Co's range includes products for pigmentation, acne and open pores, and the company plans to expand the range as well. Started as a direct-to-consumer channel business, The Derma Co brand is retailing across marketplaces such as Amazon, Nykaa and Flipkart.

"With The Derma Co, we are looking at an (annualised) revenue run rate of ₹100 crore by 2021-22," Alagh said adding that the prices of products start from ₹ 349 onwards and are aimed at mass-premium and premium segments.

Revenue run rate is a term used in online retailing to indicate the total value of merchandise sold through the marketplace over a certain period of time.

These products are now being rolled out in offline stores. While the company will start with lifestyle stores and premium outlets, followed later by general trade. PTI SR HRS hrs

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Published on February 14, 2021
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