IIT Bombay & ISB Alumnus-Founded D2C Brand Plum Sees Rs 419 Cr Revenue in FY25; Turns Profitable with Rs 25 Cr
Plum, a direct-to-consumer (D2C) beauty and personal care brand, has reported impressive financial results for the fiscal year 2025. The company, founded by IIT Bombay and ISB alumnus Shankar Prasad, has seen a significant revenue increase, marking a notable turnaround in profitability.
Financial Performance Overview
According to financial statements sourced from the Registrar of Companies (RoC), Plum’s revenue grew by 22.5% to Rs 419 crore in FY25, up from Rs 341.7 crore in FY24. This growth was primarily driven by an increase in product sales, which rose to Rs 402 crore from Rs 326.8 crore in the previous year. Additionally, the company generated Rs 17 crore from other income streams, including interest on fixed deposits and investment gains, compared to Rs 15 crore in FY24.
Cost Management and Profitability
Plum’s cost of goods sold for FY25 was recorded at Rs 127.5 crore. The largest expense category remained advertising, which accounted for Rs 139 crore, although this figure represented a 7.5% decline from Rs 150.5 crore in FY24. Advertising expenses comprised 35% of the total expenditure for the year.
Employee benefit expenses also saw an increase of 12.5%, reaching Rs 42.6 crore, up from Rs 38 crore in FY24. Furthermore, e-commerce storage and commission expenses rose significantly to Rs 28 crore, compared to Rs 18.2 crore the previous year.
Overall, Plum successfully reduced its total expenses by 6%, bringing it down to Rs 400 crore from Rs 427 crore in FY24. This effective cost management strategy allowed the company to report a profit of Rs 25 crore in FY25, a remarkable recovery from a loss of Rs 84 crore in FY24. On a unit economics basis, Plum spent Rs 0.99 to generate every rupee of operating revenue in FY25, compared to Rs 1.31 in FY24.
About Plum
Founded in 2013, Plum Goodness, commonly known as Plum, is an Indian beauty and personal care brand that emphasizes a “science-first” philosophy. The company combines research-backed active ingredients with botanical components to create a range of 100% vegan and cruelty-free products. Plum is headquartered in Thane, India.
Product Portfolio
Plum offers a diverse portfolio across multiple beauty segments, including:
- Skincare: Popular lines such as the Green Tea range for acne-prone skin, and Vitamin C and Niacinamide-based products for skin brightening.
- Haircare: A selection of shampoos, conditioners, and serums.
- Body Care: Under the BodyLovin’ sub-brand, Plum provides body care and fragrance products, including body mists, lotions, and shower gels in various scents.
- Makeup: A growing range of color cosmetics, including kajals and lip care products.
Expansion and Growth
Initially launched as a digital-first brand, Plum has expanded its presence by establishing exclusive brand outlets and partnering with thousands of multi-brand retail stores across India. This strategic growth has contributed to its increasing market share in the beauty and personal care sector.
Funding and Investment
To date, Plum has raised over $50 million in funding. Its latest funding round, Series C, was completed in March 2022, securing approximately Rs 270 crore ($35 million). This round was led by A91 Partners, with participation from existing investors such as Unilever Ventures and Faering Capital.
Conclusion
Plum’s financial turnaround in FY25, marked by significant revenue growth and a return to profitability, demonstrates the effectiveness of its strategic cost management and product offerings. As the brand continues to expand its presence in the beauty and personal care market, it remains focused on delivering high-quality, vegan, and cruelty-free products to its consumers.
Note: The financial figures and company details mentioned in this article are based on the latest available data as of October 2023.
