Indian skincare brand Earth Rhythm reported revenue of Rs 32.46 crore in FY24, a 24.7% increase from Rs 26.03 crore in FY23. Despite the growth in revenue, the company’s net loss stood at Rs 15.69 crore in FY24, slightly narrowing from Rs 16.54 crore in FY23. Expenses increased by 10.9% to Rs 51.21 crore in FY24, compared to Rs 46.14 crore in FY23.
Founded in 2020 and headquartered in Gurugram, Earth Rhythm specializes in creating smart and safe skincare products that are backed by clinical research and crafted in-house by trained cosmetic chemists. The company focuses on sustainable, natural, and organic formulations, avoiding harmful chemicals, synthetic fragrances, and artificial preservatives.
Advertisement costs formed the largest share of expenses in FY24 at 32.08%, a slight increase from 31.70% in FY23. Employee benefit costs accounted for 10.74% of FY24 expenses, down from 12.50% in FY23. Depreciation and finance costs represented 4.12% and 2.51% of FY24 expenses, respectively. The cost of materials increased to 16.61% in FY24 from 12.31% in FY23.
Earth Rhythm’s EBITDA margin improved to -47.30% in FY24, compared to -67.92% in FY23, showcasing improving operational efficiency. However, the ROCE remained at 0.00% in FY24, compared to -37.51% in FY23.
The company has raised a total of Rs 69.42 crore across three funding rounds, with the latest Series A round completed in November 2024. Co-founders Harini Sivakumar (16.76%) and Sivakumar Varadarajan (15.43%) hold the largest stakes, with 5.03% allocated to an ESOP pool.
Earth Rhythm continues to cement its place in the D2C skincare space, leveraging its commitment to clinical research, sustainability, and product innovation to capture a growing audience seeking safe and effective skincare solutions.