Direct-to-consumer skincare and beauty brand Foxtale maintained strong growth momentum in FY25, as revenue nearly tripled while the company scaled rapidly. However, higher spending on marketing and operations kept the Mumbai-based startup loss-making, according to media reports.
As per financial statements filed with the Registrar of Companies, Foxtale increased its revenue from operations 2.4 times to Rs 199 crore in FY25 from Rs 83 crore in FY24. Additionally, after including other income of Rs 7 crore, the company reported total income of Rs 206 crore for the year. Founded in 2021 by Romita Mazumdar, Foxtale positions itself as an affordable skincare brand designed for Indian skin, addressing issues such as acne, ageing, and hyperpigmentation. Notably, sales of skincare and beauty products remained the company’s only source of operating revenue in FY25.
Meanwhile, expenses rose sharply in line with Foxtale’s expansion strategy. Advertising emerged as the largest cost component, accounting for 38 percent of total expenses, as spending more than doubled to Rs 106 crore from Rs 50 crore in FY24. At the same time, material costs doubled to Rs 74 crore, while employee benefit expenses increased 55 percent to Rs 31 crore.
Overall, Foxtale more than doubled its total expenses to Rs 279 crore in FY25 from Rs 139 crore in the previous year. Consequently, the company widened its net loss by 38 percent to Rs 73 crore in FY25, compared with Rs 55 crore in FY24. During the year, the company reported an EBITDA margin of minus 39.20 percent, while return on capital employed improved to minus 26.87 percent.
Despite ongoing losses, Foxtale continued to improve its unit economics. Specifically, the company spent Rs 1.40 to generate one rupee of operating revenue in FY25, compared with Rs 1.67 in the prior fiscal year. Furthermore, Foxtale closed the year with a stronger balance sheet, reporting cash and bank balances of Rs 166 crore, up significantly from Rs 43 crore in FY24. In addition, current assets rose to Rs 316 crore.
To support growth, Foxtale has raised a total of USD 52 million in funding so far, with Matrix Partners and Kae Capital leading its investor base. Founder and CEO Romita Mazumdar currently holds a 34 percent stake in the company.
Looking ahead, the company recently stated that nearly half of all purchases on its D2C platform come from repeat customers. Moreover, Foxtale expects to end the year with annual recurring revenue exceeding Rs 700 crore in gross merchandise value terms and has guided toward achieving profitability in the next financial year.
