Deconstruct achieves profitability in FY25, driven by strong marketing and lower CAC

New Delhi: Skincare brand Deconstruct said it has turned profitable in FY25, while its revenue soared manifold to Rs 130 crore, aided by marketing and operational efficiency.

The company's revenue stood at Rs 15.46 crore in FY24.

"Deconstruct...has reported a profitable performance for the full financial year of 2024–25 (FY25), marking a significant business milestone. The company registered a double-digit growth in net revenue (adjusted EBITDA with one-time costs removed) as well as a 10X increase in top-line revenue, resulting from concerted efforts in marketing and operational efficiency," the company said in a statement.

The brand also saw a significant reduction in Customer Acquisition Costs (CAC) and increased overall marketing ROI, it added.

On the growth outlook, Deconstruct Founder and CEO Malini Adapureddy said that the Bengaluru-headquartered brand expects to clock an annualised net revenue in the range of Rs 500 crore in FY26.

To achieve this growth target, Deconstruct plans to strengthen its R&D capabilities and expand both internationally and into offline retail through shop-in-shop or kiosk models.

"Achieving EBITDA profitability is a significant milestone, but it's only the beginning of our journey. This year's growth validates the trust our community has placed in us, and we're more committed than ever to redefining skincare with integrity and impact," Adapureddy said.

The brand has recently raised Rs 65 crore from L’Oréal’s VC fund BOLD, V3 Ventures and DSG Consumer Partners to support these initiatives.

Deconstruct is also betting heavily on quick commerce platforms like Swiggy, Instamart, Zepto, and Blinkit – where it has seen significant growth, with a 200% month-on-month increase in revenue from these channels.

It plans to use the latest funding towards bolstering its distribution network by expanding its presence on Quick Commerce platforms, improving nationwide accessibility.

Deconstruct aims to diversify its product portfolio by venturing into new categories while strengthening its leadership in existing segments like sunscreens and serums.

Deconstruct also aims to expand into international markets, leveraging profitability as a key factor for sustained and independent growth.

In terms of market share, Deconstruct holds around 8 to 9% in sunscreens and 6 to 7% in face serums. The company aims to increase this to 10 to 13% by the end of FY26 for its key products.

Adapureddy, with a decade of experience in FMCG and retail, including stints at Flipkart and Procter & Gamble, reflected on how she identified a gap in the Indian market for science-backed skincare products.

She surveyed people to understand the underlying needs of the market.

"The entire idea came through when I figured out that 60-70% of the people said that it's not like we don't want to use a product like this. It is just that they're not available," she noted.

This realisation led to the launch of Deconstruct in February 2021.