Skincare brand WOW Skin Science has reported a 15.5X jump in its net loss to Rs 135.83 crore in the financial year 2021-22 (FY22) from Rs 8.78 crore in FY21 as the growth in its expenses outpaced the rise in revenue, Inc42 reported.

The total revenue of Body Cupid Private Limited, the parent company of Bengaluru-based WOW Skin Science, reportedly rose 3.4X to Rs 343.94 crore in FY22 from Rs 99.83 crore in FY21. Operating revenue is also said to be increased 3.4X to Rs 340.37 crore from Rs 99.83 crore in FY21, as per Body Cupid’s filings with the Ministry of Corporate Affairs.

Besides WOW Skin Science, Body Cupid also operates other verticles like BuyWOW and WOW Life Sciences. 

The total expenses have escalated 4.4X to Rs 479.77 crore in FY22 from Rs 108.58 crore in FY21, led by a surge in employee benefit expenses. It is said that WOW Skin Science spent Rs 1.4 to earn every Rs 1 during the year under review. 

The start-up’s employee benefits expense is also said to jump 8.3X to Rs 192.8 crore from Rs 23.3 crore in the previous year. It reported other expenses of Rs 278.93 crore in FY22, up 4X from Rs 69.57 crore in FY21. 

Advertising and promotional expenses too increased 4.3X to Rs 188.76 crore from Rs 43.90 crore in FY21, while the purchase of stock-in-trade increased 2.4X to Rs 164.76 crore from Rs 69.46 crore in the previous fiscal.

Founded in 2014 by Manish and Karan Chowdhary, WOW Skin Science offers products across skin, hair, bath and body, wellness and nutrition and health.

The D2C startup was last profitable in FY20 when it recorded a profit of Rs 9 lakh on operating revenue of Rs 6.5 crore. However, WOW Skin Science has seen its expenses balloon since FY21, and with them, its loss.

The startup last raised $48 million from Singapore’s GIC in June 2022. It has raised a total funding of $125 million across multiple rounds to date.