New Delhi: D2C personal care brand Pilgrim hopes to break-even by the end of this calendar year 2023, said Anurag Kedia founder of the company in an interaction with ETRetail.
The company is not profitable yet but at the channel level, it is profitable, Kedia added.
The brand also announced its first-ever employee stock ownership plan (ESOP) scheme. Kedia said, “We have earmarked 10 per cent of our shareholding to the ESOP pool for 100% employees.”
“In pilgrim, we are giving the share price on face value in the current market scenario,” he added.
Employees will get the monetary benefits if and when the company becomes the Rs 1000 crore company. Kedia expects that this can be achieved in next 4-5 years.
With a strong focus on employee well-being and hence benefits, the company has seen its employee-benefit-centric expenses grow 2.5 times in the last 12 months. It has also doubled its employee strength in the same time period.
On fund-raising part, it said that it is already well-funded and shall not raise any funds immediately.
On the sales contribution, Kedia shared that about 60 per cent of sales come from partner channels and rest 40 per cent sales come from its own channel. And the brand’s non-metro sales contribution is 65 per cent and about 35 per cent is from metro cities.
Currently, the firm maintains a monthly gross sales of Rs 12 crore, Kedia said. The personal care brand hopes to grow its annual sales by 3 times as it plans to focus on offline expansion in the coming months. It expects 15-20 per cent of its sales coming from offline channels by December 2023. The brand is presently aiming to expand on North and West market.
Speaking on the price hikes, Kedia said, “For the first time in one and half year, we will be doing price hikes of 5-8 per cent in a few of our hair care and skin care products.”
In addition, the D2C brand is investing on research and development (R&D) and focusing on bringing innovation in its products. Further, it aims to focus on volume and value growth.
This year, the startup is also looking to partner with quick-commerce firms like Blinkit, Bigbasket and Swiggy Instamart to expand its customer-reach.