According to Chaitanya, the average monthly revenue of Skincraft is Rs 8 crore and its ARR is Rs 100 crore.
Who doesn’t want soft and glowing skin? But can a formula really work on all skin types?
Hyderabad-based Skincraft does not think so, which is why this skincare startup focuses on customized solutions for Indian women.
Chaitanya Nallan, co-founder and CEO of Skincraft, says, “This is because no two people are the same.” Our skin is as unique as we are, but commercial companies make products for the masses. ”
The skincare brand uses artificial intelligence (AI) driven technology to provide customers with dermatologically approved and customized skincare solutions. Under the parent company IncNut Digital, the brand Skincraft recently raised $ 4 million from RPSG Ventures in its Series A round.
Focus on skincare
Chaitanya, who studied at IIT-Kharagpur and ISB Hyderabad, was running his own advertising platform company mGinger in 2008 and was in a meeting. He was presenting his startup idea to Kalari Capital, where he met Mukesh Bansal, now CEO of Cure.fit.
Chaitanya says, “Myntra was not as it was then. Mukesh was pitching an idea for a company that mentioned customizable T-shirts and I liked the idea very much. ”
After that Chaitanya got the idea of ’customizing products’ according to consumer preferences.
In 2011 Chaitanya teamed up with Sangram Simha and Virendra Shivhare to set up IncNut Digital, which operated two women-centric digital media platforms, Stylecraze.com and Momjunction.com.
Chaitanya remembers,
“We promoted a lot of skincare brands through these platforms and received feedback from customers. Most of the women did not like the products they were using. “
On a personal front, Chaitanya saw how his wife’s skin changed and became very sensitive during her pregnancy. He says, “I also noticed my wife’s pattern. She would buy a new item and then throw it away. ”
Through IncNut’s platforms, the team conducted an in-depth survey to understand women’s issues with skincare products. He says, “After the results, we decided to talk to dermatologists about why most products don’t work on customers.”
After constant discussions with dermatologists and Ayurveda experts, the team noted the fact that no two people have the same skin and there is a need to customize skincare products.
Skincraft began online retailing in mid-2018 after the design was completed in 2017.
For every new client it asks about 30 questions, similar to a dermatologist, to understand skin type, acne type, and other inputs. The platform then recommends three products to its customers based on results or skin IDs: a cleanser, a barrier repair (or moisturizer), and a balm-like product to combat skin problems.
road ahead
“When we started, our accuracy rate was 54 percent, today our skin ID provides an 82 percent accuracy rate,” says Chaitanya.
Skincraft, which began with a customized skincare product for women, has now expanded its offerings to haircare. A team of dermatologists, formulators and Ayurvedic experts manufacture the products. Three million users have taken the Skin ID test so far and the startup has more than six lakh paid users.
According to Chaitanya, the average monthly revenue of Skincraft is Rs 8 crore and its ARR is Rs 100 crore.
India’s skincare and cosmetics industry is widespread. According to Goldstein Research, the Indian cosmetics industry was valued at $ 11.16 billion in 2017 and is projected to grow at a CAGR of 5.91 percent between 2017 and 2030.
But Skincraft believes that customization is what sets its offerings apart.
“We want to delve deeper into the hair segment and plan to launch customizable immune products by the end of this month,” says Chaitanya.