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What began as an attempt to address hair loss and the insecurities surrounding it among India’s youth has turned Traya into a nearly Rs 600 crore business. Yet, despite strong revenue growth in FY26, the seven-year-old haircare startup continued to report losses. Traya's revenue from operations surged 72.6% year-on-year to Rs 585 crore in FY26 from Rs 339 crore in FY25, according to its consolidated annual financial statements reviewed by Entrackr. Founded in 2019, Traya focuses on addressing hair loss by identifying its root causes and provides personalised hair treatment plans supported by consultations with hair coaches and licensed physicians. The sale of customised hair care kits was Traya's sole source of operating revenue. The company also earned Rs 8 crore through gains from the sale of investments, pushing its total income to Rs 593 crore in the fiscal year ending March 2026 from Rs 343 crore in FY25. On the cost side, advertising remained the largest expense, accounting for around 44% of the firm's total expenditure. Advertising costs nearly doubled to Rs 275 crore in FY26. Meanwhile, the cost of materials procured increased 68.7% to Rs 140 crore during the last fiscal year. Traya spent Rs 81 crore on employee benefits in FY26. Its legal, transportation, technology and other overheads also catalyzed its total expenditure up 70.2% to Rs 623 crore in FY26 from Rs 366 crore in FY25. Despite a 72.6% growth in operating revenue, the increase in expenses continued to weigh on the company's bottom line. Traya reported a net loss of Rs 29 crore in FY26, compared to Rs 23.5 crore in FY25. At a unit level, the company spent Rs 1.06 to earn every rupee of operating revenue in FY26. Its return on capital employed (ROCE) and EBITDA margin stood at -44.7% and -6.19%, respectively. The company had total current assets of Rs 174 crore as of March 2026. Traya has raised approximately Rs 96 crore in funding to date. This includes aRs 75 crore investment from Xponentia Capital in April 2024. Its backers include Fireside Ventures, Kae Capital and Whiteboard Capital. The firm is reportedly in talks to raise another Rs 300 crore from Verlinvest. Hair thinning and hair loss are real concerns, particularly among India's youth. Factors such as water quality, nutritional deficiencies, eating habits, and poor sleep can all contribute to the problem. This has created an opportunity for startups to build businesses around hair care, with several brands now selling gummies, serums and supplements. Traya has managed to carve out a place in this growing market with its personalised treatment approach. It will be interesting to see how large this business can become and how soon the company can turn profitable.
document fetched 2026-10-31 02:57