RENEE Cosmetics’ Revenue Crosses ₹400 Cr Mark In FY26, Loss Down 46% YoY

Beauty and personal care (BPC) startup RENEE Cosmetics’ cofounder and CEO Ashutosh Valani told Inc42 that the brand cut its FY26 net loss by 46% to ₹36 Cr from ₹67 Cr incurred in the previous fiscal year.

Valani said that the D2C beauty startup’s operating revenue for the fiscal jumped about 38% to ₹440 Cr from ₹320 Cr reported in the previous year. At the same time, its expenses grew 45% to ₹290 Cr from ₹200 Cr a year prior.

The uptick in the startup’s top line helped it cut its EBITDA margin to -8% from -21% in FY25.

The improvement in the brand’s margins was driven by notable improvement in its offline sales and repeat purchases. The CEO shared that RENEE’s focus on offline retail is crucial, as 84% of the BPC startup’s beauty sales happen via physical stores. This is because its customers prefer trying makeup products before purchasing them.

Valani said that the startup focused on heavy offline expansion by investing in setting up presence in “shop-in-shop”, wholesale retail along with other modern trade outlets.

In FY26, RENEE’s offline sales contributed about 35% of its revenue. Meanwhile, 35% of its revenue is still driven by online sales on marketplaces like Nykaa, Flipkart and Amazon.

The remainder of its sales during the fiscal came from quick commerce (15%) and its own website (15%).

“We are seeing strong offtake from offline stores due to a healthy demand and a strong brand pull. From here, we believe the business can grow another 40-50% in FY27,” he said.

He expects the startup to turn profitable in FY27 as it scales the offline vertical further. He believes there is enough headroom to expand offline when compared with online expansion.
The cofounder noted that the online business is already profitable, but because of the investments required for offline distribution, the startup’s expenses have remained elevated.

“It takes about four to five years for a good digital brand to lay out the brand scale, foundation, and offline team. And now that we have done that successfully, I think from here on this is not going to act as a startup but a very profitable business,” he said.

RENEE’s Omnichannel Play

Founded in 2020 by Beardo cofounders Valani and Priyank Shah, along with actor Aashka Goradia Goble, RENEE is an affordable color cosmetics brand that offers lipsticks, eye shadow, mascara, foundation, and perfumes across 250 master SKUs and 750 sub SKUs.

Valani noted that eye makeup and lipstick are the startup’s most popular product lines. To further expand its product portfolio, RENEE has forayed in the skincare category with Ayurveda-led personal care brand Indian Secrets.

The startup’s products are currently sold across 25,000 offline touchpoints along with running a few self-owned stores. However, Vilani noted that the startup is unlikely to set up more self–owned stores owed to the low average order value (AOV) of its products.

Currently, it clocks an AOV of ₹750 on its website and ₹500 on online marketplaces. The startup claims to have a repeat rate of 42% on its online sales.

Notably, around 60% of the startup’s business comes from tier II, III and IV markets, which are known for their preference for offline sales.

As the brand scales its presence on quick commerce platforms like Blinkit and Zepto, it is also introducing smaller and more affordable products that can cater to the impulse, last-minute buying behaviour typical for these platforms.

The Ahmedabad-based startup has raised over $80 Mn till date, including its latest $30 Mn Series C funding round led by Playbook Partners and Midas at a valuation of $200 Mn. Its other investors include Edelweiss Group, Equanimity, 100Unicorns and ecommerce roll-up ecommerce startup BRND.ME (formerly Mensa Brands).

Valani said the brand currently has sufficient runway and cash flow, eliminating the need for another equity funding round in the near term. Instead, the brand is targeting an IPO by FY29, after achieving profitability.

In FY27, the startup is targeting a revenue of ₹600 Cr with an annual recurring revenue of ₹800 Cr.

“In the next couple of years, we want to make RENEE a ₹1,000 Cr ARR brand with a 10% positive EBITDA and profitability,” he added.

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