Caffeine-based personal care brand mCaffeine aims to generate Rs 700 crore in revenue by FY’24 as it expands its presence in online and offline channels and strengthens its product portfolio .
Mumbai-based Pep Technologies (which owns mCaffeine) is also planning to increase hiring to grow its workforce to around 200 over the next 18 months.
âIn October 2016 we launched mCaffeine and have served almost 2.5 million customers to date. This year (FY22) we will be making Rs 300 crore in terms of GMV and by FY24 we will be making Rs 1,000 crore GMV. Revenue would be Rs 700 crore by FY24, “mCaffeine co-founder and CEO Tarun Sharma told PTI.
He added that 70 percent of mCaffeine’s business in FY24 is expected to come from online channels, while 30 percent will be through offline channels, as the company expands its presence in physical stores as well.
GMV is a term used in online retailing to indicate the gross market value of products sold in the marketplace over a certain period of time.
âBy FY24, we plan to have a presence in 8,000 to 10,000 offline stores across the country. Online will always be the first goal for us because that is how the brand was formed. But our customers are omnichannel and that’s why we want to go off the shelf near them, âsaid Sharma.
He added that the company has around 60 employees and as it expands its operations it will hit 200 over the next 18 months as mCaffeine will be hiring for strategic roles, offline retail, marketing. and the supply chain.
Sharma explained that India spends $ 9 per capita on beauty and personal care products and that number will be $ 20 over the next 5 years and the total market size is expected to be $ 5 billion (vs. Currently $ 1.2 billion) online sales (of beauty products), which will account for 25 percent of the market share.
This reflects the potential of the market, especially with differentiated product offerings.
Regarding offline expansion, Sharma said that some of the areas where the company is considering Maharashtra, Bangalore, Punjab, Gujarat, Bengal, parts of Chattisgarh, TTM (Telugu speaking, Tamil speaking markets and Malayalam) – which are also strong markets for the brand in terms of online sales.
The company has raised around Rs 60 crore and is backed by investors such as Amicus Capital and RPSG Ventures.
Speaking of the company’s product portfolio, Sharma said mCaffeine launched 13 products this year and has 31 SKUs in its line.
“We will continue to launch new products. Five years later, 20 products per year is the average in terms of new launches. For us, revenue by product density is extremely important – which means if I have earned Rs 300 crore 30 SKU business, what have others done to do it – is it less or more, “he added.
Sharma noted that this metric speaks of brand affinity, grip, repeat purchases, product penetration, and category leadership.
âWe have almost three times the revenue per product density than any other brand. This means that in order to reach Rs 300 crore, someone else has launched 90 products. And this is one of the most important measures for us. We will therefore expand to 15 additional products, we will be 45 to 46 products by the end of the fiscal year, but when we launch we will ensure that our sales by product density are intact and growing, âhe added.
Sharma said the company expects its revenue by product density to double current levels over the next five years because “we will increase product distribution and our products are expected to have a larger share of categories.”
mCaffeine has an in-house product research and development department and has partnered with three third-party manufacturers to manufacture the products.
Asked about international expansion, Sharma said, âWe think we have a good chance of placing India on the map of iconic mass / premium global brandsâ.
âThe international has always been in our heads and this year we are launching two geographies. We have received a huge response from Amazon’s top 10 geographies, the usual suspects from the United States, the Middle East and the United States. “Southeast Asia. So we are going to close two. Initially, we will connect, understand the consumer, install our teams in these geographical areas and we will not disconnect if the market does not oblige us to do so,” a he added.
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Posted on: Sunday September 19, 2021 19:18 IST