The parent organization of one of the leading D2C personal care brands, Pilgrim, Heavenly Secrets Pvt. Ltd., proudly announced that there was an outstanding 160% surge in the money they made during the financial year 2023-24 (FY24). This significant growth is an evidence of the brand's strong position in the market and the effective strategy of the brand for the successful expansion of the business.

From INR 76.5 Cr in FY23 to a shocking INR 198.8 Cr in FY24, Pilgrim has not only seen an enormous growth but become one of the prominent names in the ever-expanding personal care industry. Here is an in-depth analysis of the remarkable achievement and the effect of this growth on the D2C industry.

Breaking Down Pilgrim's FY24 Performance

Financial milestones

  • Revenue Expansion: Pilgrim got sales income of INR 198.8 Cr in FY24, a 160% increase from the INR 76.5 Cr from the previous year. Apart from an additional profit of INR 5.6 Cr, the total income for FY24 has been estimated at INR 204.4 Cr.
  • EBITDA Margin: Pilgrim EBITDA margins reached -13% in FY24, which is a significant increase from the-27% recorded in FY23 period.

Expenditure

Pilgrim, to keep such growth, has reported the following increased expenditures:

  • Money Spent on Promotion: INR 108.8 Cr, that is, an increase of 107%, as compared to FY23 (INR 52.5 Cr).
  • Employee Benefits: INR 21.2 Cr, the increased workforce is displayed
  • Rent Costs: INR 3.02 Cr, which is the growth in offline presence.

A Closer Look at the Losses

An Examination of the Break-Even Point Of the revenue increase, Pilgrim achieved, they were not able to capitalize that as there was a corresponding increase of INR 26.3 Cr in the net loss, a 14% change from the INR 23.05 Cr loss of FY23. In any case, these losses resulted from investments in the fields of innovation, marketing, and retail expansion—these strategies are crucial for the company's long-term growth.

Growth Drivers for Success Strategies

Omnichannel Establishment

Pilgrim has achieved the multi-channel presence by:

  • Selling products through their website and e-commerce platforms.
  • Besides opening five company stores, Pilgrim also accords with 300+ retail outlets all over the country.

Innovative Product Portfolio

With a founder like Anurag Kedia and Gagandeep Makker in 2019, Pilgrim encompasses many beauty and body care businesses such as skincare, haircare, color cosmetics, and fragrances. The variety of products makes Pilgrim inclusive and thus it has been formidably meeting customers' demands.

New Financial Investment

Pilgrim recently was able to secure INR 200 Cr primary and secondary transactions that had the major participation of Fireside Ventures, Vertex Ventures SEAI, and Mirabilis Investment Trust. The primary motivation of the funding is to:

  • Growing Pilgrim's brick-and-mortar presence.
  • Becoming a robust R&D center for creating innovative products.

Pilgrim in the Competitive D2C Landscape

Pilgrim is one of the many brands in the personal care industry that is close to Mamaearth, SUGAR Cosmetics, Nykaa, and Juicy Chemistry. These brands are its direct competitors. The brands use tactics including D2C distribution channels, traditional retail distribution channels, strong branding, and brand differentiation to win market share and become profitable in the long term.

Key Takeaways for the D2C Industry

Through the strategic emphasis on marketing and product diversification, Pilgrim’s success story is the manifestation of an exponential growth concept by making the right strategic investments.

Evidently, Pilgrim’s marketing strategies have successfully positioned them in the market as a brand with a unique perception in consumer’s minds, allowing the company to embark on this expansionary journey. Pilgrim’s ability to set it

Creating Presence Offline to Increase the size of visibility: Brands that are growing their offline business are starting to get into the new markets and are building community trust.

Inventing for the Future: Investing a lot into research and development only clarifies the company’s dedication to keeping on the top of the competition sector.

Conclusion

In three years, Pilgrim has experienced an outstanding growth of revenues from INR 76.5 Cr to INR 198.8 Cr, indicating perfect business insight and capability to be in line with market needs. By doing so, the brand is not only growing but is also an inspiration to other D2C startups who are eyeing organic expansion.

Through backing from investors and with various channels of product distribution, an excellent media mix, Pilgrim is now carving out their own niche in the highly competitive personal care market of India.

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