Traya, a direct-to-consumer health and wellness brand that has a niche position with hair loss solutions, achieved fantastic financials in the fiscal year ending March 2024. The company headquartered in Mumbai registered a revenue of ₹236 crore, more than three times its ₹61 crore of FY23. In a commendable turnaround, Traya has also not only turned profitable but even reported profits to the tune of ₹9 crore, against a whopping loss of ₹28 crore suffered in the last fiscal year.
PC: The Economic Times
The major reason for the revenue increase can be seen as Traya’s personalized hair loss solutions, where the causes are addressed by expert guidance from experienced hair coaches and physicians. 99.36% of the total operating revenue came from product sales, which reached ₹234.5 crore in FY24, significantly higher than the previous year. The rest of the revenue came from courier services and doctor consultation fees, thereby indicating the comprehensive approach of the brand towards health and wellness.
Pained by the extra-fast growth, Traya’s expenses also went up in leaps and bounds. Marketing and sales made up for 43% of the overall costs, which doubled to ₹98 crore in FY24 from ₹51 crore in FY23. This investment in marketing would go to reflect Traya’s commitment to its brand presence and customer base.
Additionally, the cost of procuring materials surged 3.6 times to ₹54 crore, driven by the increased scale of operations. Employee benefits also saw a substantial rise, increasing fourfold to ₹36 crore. Other overheads, including freight, legal, and travel costs, contributed to an overall expenditure increase of 154%, reaching ₹229 crore in FY24, up from ₹90 crore the previous year.
The strategic revenue growth helped Traya significantly enhance its financials. The Return on Capital Employed (ROCE) rose to 8.7%, and EBITDA margins touched 5.04%. In absolute terms, Traya earned ₹1 after spending ₹0.97 in FY24, showing that it operated with improved operational efficiency.
At the end of FY24, Traya reported total current assets of ₹159 crore and a cash balance of ₹85 crore, providing a solid financial foundation for future growth.
Traya has so far raised about ₹96 crore in funding, and its investors include Fireside Ventures, Kae Capital, and Xponentia Capital. The company had recently secured funding of ₹75 crore from Xponentia Capital in April 2024, which has helped it scale up operations.
Building from this momentum, Traya shall continue to innovate in the health and wellness space. With such a focus on personalized solutions and enhanced customer engagement, Traya is well poised to capture an increasingly larger market share of growing health and wellness products.
Traya’s impressive revenue growth and return to profitability in FY24 underlines its successful strategy in the competitive health and wellness industry. By leveraging technology and expert insights to address hair loss, the company has not only expanded its financial footprint but has also established itself as a trusted brand in the market. As consumer interest in health and wellness continues to rise, Traya’s future looks promising, with ample opportunities for further growth and expansion.
