Celebrity associations have played a pivotal role in the success story of Pep Brands, the parent company of popular brands mCaffeine and Hyphen, according to Chief Executive Officer Tarun Sharma.
The co-founder attributes much of the brands' visibility and credibility to partnerships with stars like Alia Bhatt and Kriti Sanon.
"Alia Bhatt's alignment with mCaffeine has strengthened our appeal among younger audiences, enhancing brand loyalty and accelerating consumer interest. Kriti Sanon's involvement as a co-founder of Hyphen takes this a step further, bringing personal engagement to product development and marketing," Sharma explained. "These collaborations have significantly boosted trust and adoption, propelling Hyphen to become India's fastest-growing, celebrity-led D2C brand to cross Rs 100 crore in revenue."
Both partnerships underscore Pep Brands' commitment to authentic and relatable skincare solutions, leveraging star power to deepen customer connections while achieving rapid growth.
Turnaround
The company came a long way from transforming mCaffeine from a loss-making entity to profitability. "By repositioning the brand's focus on winning categories and expanding the most profitable consumer acquisition cohorts, we strengthened our core business while aligning with the preferences of our most engaged and valuable consumers. A significant milestone was increasing our repeat purchase rate to account for 50% of our customer base, fostering deeper brand loyalty and significantly reducing marketing costs," Sharma said.
"With operating leverage and efficiency firmly in place, we have not only reached profitability but are now positioned to scale further while maintaining a healthy financial trajectory. All these efforts were driven by our long-term vision of achieving Rs 1,000 crore in sales with a 20% Ebitda," Sharma said.
Tarun Sharma, Co-founder & CEO, PEP Brands (Source: Company)
Targeting Tier-2, Tier-3
Pep Brands posted a strong Q2 fiscal 2024-25 performance, with metro cities contributing 60% of revenue and tier-2 and tier-3 markets showing impressive growth at 40%. Sharma emphasised a continued focus on expanding product lines in metros while targeting tier-2 and tier 3 cities through enhanced e-commerce strategies and local partnerships.
"Our products reach 19,000 pin codes across India, with e-commerce being a key driver. Repeat purchase rates of 50% reflect strong customer loyalty," he said.
In the coming months, Pep Brands plans to enhance its offline presence and engage regional influencers to further penetrate untapped markets. Technology-driven efficiencies in operations and supply chain will remain critical in sustaining profitability while scaling growth across regions.
Expansion Plans
With the Indian skincare market witnessing a surge in both homegrown and international brands, Pep Brands is gearing up for strategic expansion. mCaffeine continues to lead the caffeine-infused body care category, while Hyphen focuses on solution-driven skincare.
"We are actively exploring adjacent categories in personal care and skincare that align with consumer needs. For mCaffeine, we aim to expand across face care, body care, hair care, and lip care. With Hyphen, the goal is to scale it into a Rs 500-crore brand within three–four years," Sharma shared.
Both brands emphasise science-backed, sustainable innovations tailored to evolving customer preferences. Sharma emphasised the importance of clear brand positioning to cater to distinct audience segments without overlap, ensuring sustained growth across categories.
Sharma remains optimistic about leveraging celebrity influence, consumer loyalty, and product innovation to dominate India's dynamic skincare market.
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