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Case Study · Skincare

From ₹1.2Cr to ₹5.5Cr per month — with a 4x contribution margin.

Skincare Brand (₹1.2Cr → ₹5.5Cr / month) · 8 months

Business Overview

A premium Indian skincare brand had strong product-market fit but was scaling with a broken funnel. Meta ROAS looked 'okay' at 1.8x, but the P&L was bleeding. Contribution margin was 4%. Cash flow was tight.

Problem

The founder believed the problem was traffic quality. In reality, the business had 6 profit leaks: overpriced shipping absorption, no upsell architecture, weak retention, wrong media mix, missing subscription, and poor creative testing cadence.

Diagnosis

We ran the Profit Engineering™ audit. Contribution margin was 4% (target: 22%+). Repeat rate was 12% (target: 35%+). Blended MER was 1.9x (target: 2.8x). We identified ₹42L/month in leaks before touching a single ad.

Strategy

  • 01Rebuild unit economics — pricing, bundles, shipping
  • 02Deploy subscription funnel with founder-video onboarding
  • 03Rebuild retention (Klaviyo + WhatsApp)
  • 04Restructure Meta with contribution-margin targets
  • 05Add Google Search for bottom-funnel intent
  • 06Launch marketplaces with margin discipline

Execution

  • Month 1–2: Unit economics rebuild, subscription launch
  • Month 3–4: Retention stack, Klaviyo flows, WhatsApp broadcasts
  • Month 5–6: Meta + Google restructure with new offers
  • Month 7–8: Marketplace launch (Nykaa, Amazon), scaling

Metrics

Monthly Revenue
₹1.2Cr₹5.5Cr+358%
Contribution Margin
4%22%+18pp
Blended MER
1.9x3.4x+79%
Repeat Rate
12%41%+29pp
LTV / CAC
1.3x3.8x+192%

Key learnings

Revenue growth without margin growth is theatre. Fix the business, then scale spend.

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