Fixderma's low-key, high-growth strategy defies D2C playbook

Mint

11-07-2025

MUMBAI
:
Skincare company Fixderma is taking a markedly different approach from most direct-to-consumer brands—focusing on operational profitability, exports, and limited offline expansion.
The Lotus Herbals-backed brand saw its sales grow 30% in 2024-25 and is targeting a 55% rise in 2025-26, said Shaily Mehrotra, its co-founder and chief executive.
Instead of high marketing spends or rapid category expansion, the Gurugram-based firm is doubling down on dermatology-led products and controlled channel growth. 'We're not looking to be everywhere or do everything. There's still headroom in our core category," Mehrotra told Mint.
Skincare company Fixderma is taking a markedly different approach from most direct-to-consumer brands—focusing on operational profitability, exports, and limited offline expansion.
The Lotus Herbals-backed brand saw its sales grow 30% in 2024-25 and is targeting a 55% rise in 2025-26, said Shaily Mehrotra, its co-founder and chief executive.
Instead of high marketing spends or rapid category expansion, the Gurugram-based firm is doubling down on dermatology-led products and controlled channel growth. 'We're not looking to be everywhere or do everything. There's still headroom in our core category," Mehrotra told Mint.
Lotus Herbals Pvt. Ltd, which owns a 30-32% stake in the company for a ₹38 crore investment in 2021, remains a non-operational partner. 'There's no day-to-day involvement. We report numbers quarterly," she said. Roughly ₹16 crore of the funds were used to clear debt; the rest were deployed slowly, with no plans for further funding at this stage.
Lean operations, no Retail buildout
Fixderma India Pvt. Ltd operates two in-house manufacturing units (set up in 2012 and 2019), allowing better control over cost and production timelines. While most new-age brands outsource manufacturing, Mehrotra said the direct setup supports healthier margins and quality consistency.
The brand has stayed away from large-scale retail. It operates a single store in Gurugram—positioned as an experience centre—and does not intend to scale that model. 'The economics don't add up for our ticket size," she said.
Retail through pharmacy chains, however, is growing. Fixderma has expanded distribution with Apollo Pharmacy, Tata 1mg, and other medical retailers, particularly in the North East and West Bengal. Overall, retail accounts for about 5% of sales.
Exports and derma drive sales
Fixderma's business is split across D2C (40%), doctor-led derma sales (30%), exports (25%), and retail. Sales through the distributor channel, which includes exports and derma, touched an all-time high of $10 million in 2024.
Vietnam remains its strongest international market, followed by Malaysia, Cambodia, and Nepal. 'Vietnam has become a high-performing market for us," Mehrotra said, adding that the company will participate in upcoming trade fairs in Jakarta, Moscow, and Bangkok to build further distributor relationships.
Bangladesh sales have slowed due to a steep 120% import duty, while Indonesia remains a white space.
No diversification for now
Unlike many other D2C players, such as Mamaearth, mCaffeine, Wow Skin Science and The Moms Co., Fixderma is not entering adjacent categories such as makeup, supplements or baby care., Fixderma is not entering adjacent categories such as makeup, supplements or baby care. 'There is still room to grow in our current portfolio. Our focus remains on skin concern-based products," she said.
The company is also working on a mass-market body lotion product, inspired by a formulation it supplies to the Australian government under a private label agreement. The product will be sold through pharmacies and target regular-use segments such as diabetics or recovering patients.
The company spends selectively on digital marketing, with the highest investments going toward D2C. It has largely stayed away from celebrity endorsements, barring a small campaign with Vaani Kapoor, and instead focuses on influencer content related to skin issues, Mehrotra said.
The company faced a Reddit thread in 2024 accusing it of not disclosing SPF test results. Mehrotra said the brand got its sunscreen tested in 2013 and retested in 2023 through international labs. 'SPF testing isn't widely available in India and costs are high, but that doesn't mean it's being ignored," she added.
Fixderma has also dealt with counterfeit products on e-commerce platforms such as Meesho and Snapdeal. The company now monitors listings more actively and has found Amazon to be more responsive in enforcing IP rights.
A former distributor had also posted allegations of unpaid dues online. Mehrotra attributed this to routine challenges of doing business across regions. 'We work with 450+ stockists and 18 CFAs. In one case, a distributor disappeared with over ₹2 crore in inventory. We recovered the goods, but incidents like this happen," she said.
Staying conservative
The company is not planning to raise more capital or list publicly in the near term. 'We've built at our own pace, kept costs tight, and stayed profitable. The idea is to grow responsibly," said Mehrotra.
Fixderma had earlier been turned down by institutional investors for being 'too cautious". Mehrotra said several funds that passed on the brand later lost money in other high-burn D2C ventures. 'We weren't the right fit for that style of growth. And that's okay."
Fixderma operates in India's fast-growing dermatology-led skincare market, which will be valued at over ₹12,000 crore in 2024. The market includes medicated and concern-based products for conditions like acne, eczema, pigmentation, and sun protection.
According to IMARC Group, the segment is expected to grow at a CAGR of 8.7% through 2033, driven by rising demand for clinic-recommended, functional skincare.
Fixderma competes with The Derma Co. (Honasa Consumer Ltd), Minimalist, Bioderma, Cetaphil, and La Roche-Posay in the clinical skincare space, and Plum, Aqualogica, Re'equil, and Foxtale in the D2C and premium skincare category.
However, unlike most D2C brands, Fixderma owns its manufacturing and does not operate in colour cosmetics or supplements, keeping its focus strictly on skin concern-based products.