The Ayurveda Co, a direct-to-consumer (D2C) brand specializing in ayurvedic beauty and personal care products, has reported a 66% year-on-year growth in revenue for the fiscal year 2024. The company’s revenue from operations reached Rs 59.6 crore, up from Rs 36 crore in FY23. However, despite the revenue increase, The Ayurveda Co faced a sharp rise in losses, with its net loss surging over three-fold to Rs 68 crore from Rs 21 crore in FY23.

The widened loss is primarily attributed to a significant rise in overall expenditure, which increased by 97% to Rs 109.5 crore in FY24. Material costs more than doubled to Rs 28.6 crore, while advertising expenses soared by 73% to Rs 26 crore, and employee benefits increased by 80% to Rs 15.5 crore. Manpower and recruitment costs also surged, adding Rs 11.3 crore to the company’s total expenses.

Despite securing Rs 100 crore in a Series A funding round led by Sixth Sense Ventures in 2023, The Ayurveda Co’s financial health remains a concern. The company ended FY24 with current assets worth Rs 45 crore, but its cash and bank balance stood at just Rs 52 lakh, raising concerns about its liquidity.

The Ayurveda Co’s financial struggles underscore the challenges faced by D2C brands in a competitive market dominated by brands like Ayurveda Experience, Wow Skin, and Sugar. The next fiscal year will be critical in determining the company’s long-term viability.