Nat Habit, the direct-to-consumer personal care startup that recently rebranded itself as Breathe Life, delivered strong revenue growth in the financial year ending March 2025 but continued to operate at a loss as spending on advertising and operations increased sharply.
The company’s revenue from operations rose 47% year-on-year to Rs 106 crore in FY25, up from Rs 72 crore in FY24, according to financial statements sourced from the Registrar of Companies.
Despite the topline growth, Nat Habit’s losses widened significantly, highlighting the cost pressures faced by consumer brands focused on rapid scale.
Strong Topline Growth in FY25
Nat Habit’s performance in FY25 reflects continued demand for its natural and freshly made personal care products.
Revenue Crosses Rs 100 Cr Mark
The company crossed the Rs 100 crore revenue milestone for the first time, driven by higher customer acquisition, repeat purchases, and expanded product offerings.
The 47% growth rate underscores Nat Habit’s ability to scale its business in a competitive D2C landscape dominated by both startups and established FMCG players.
Losses Increase on Higher Spending
While revenues surged, profitability remained elusive.
Losses Jump 61%
Nat Habit’s losses increased by 61% in FY25 compared to the previous year. The widening losses were primarily due to elevated advertising expenses and higher operational costs associated with scaling the business.
Aggressive marketing investments were aimed at boosting brand visibility and customer acquisition, but they also weighed heavily on the company’s bottom line.
Advertising and Operations Drive Costs
The company continues to rely on performance marketing and digital advertising to fuel growth.
Customer Acquisition Remains Costly
Rising ad rates across digital platforms increased customer acquisition costs, a challenge faced by many D2C brands in India.
In addition, operational expenses related to sourcing fresh ingredients, manufacturing, logistics, and fulfillment added further pressure on margins.
Rebranding to Breathe Life
During the year, Nat Habit rebranded itself as Breathe Life, signaling a broader brand vision focused on wellness and mindful living.
Strategic Shift in Brand Identity
The rebrand is expected to help the company expand beyond its core personal care products and strengthen its positioning in the wellness segment.
However, such transitions often involve additional marketing and operational investments, which may have contributed to higher costs during the year.
Balancing Growth and Profitability
Nat Habit’s FY25 performance highlights a familiar challenge for fast-growing consumer startups: balancing rapid scale with sustainable economics.
While strong revenue growth suggests product-market fit, the rising losses indicate that the path to profitability may take longer, especially in a capital-intensive category.
Going forward, the company may focus on improving margins through better supply chain efficiencies, higher repeat purchase rates, and more disciplined marketing spend.
Outlook
As Nat Habit, now Breathe Life, continues to expand its customer base and product portfolio, investors and industry watchers will be closely tracking its ability to control costs without slowing growth.
The FY25 results show momentum on the revenue front, but achieving profitability remains the next critical milestone.
