MAM
From neighbourhood influencers to Disha Patani: The journey of WOW Skins
NEW DELHI: Fit & Glow Healthcare Pvt Ltd, the parent company that owns the brand WOW Skin Science, was launched in 2013. In the initial phase, the brand encountered a few stumbling blocks but now it is sitting pretty at a valuation of $50 million (Rs 350 crore).
Wow Skin Science co-founder Manish Chowdhary described how the company began with tight operations and a small team that focused on formulations and development of the brand. “There are a few key things that we worked on when we started our journey: the first was consumers; the second, our formulations; the third, faster turnaround time; and fourth, easy accessibility to the products across the country. From the beginning, we used data science and analytics to understand consumer behaviour and develop products based on the insights.”
The brand offers a wide range of products in the skincare and haircare categories. It has over 200 products and the apple cider vinegar haircare range was the first of its kind in the market.
The company’s target audience is basically new-age millennials, the youth, and working professionals. Chowdhary mentioned that the brand follows a simple customer acquisition strategy. “A high percentage of our target audience is on social media and are digitally savvy. The digital medium remains the main platform for us for customer acquisition, and we do appropriate investments in that. We are able to generate an impressive amount of customer response through our efforts on the digital platform.”
In the age of digital marketing, social media plays a pivotal role in promoting a brand and WOW Skins has gone the same route. “We decided not to take the usual advertising route, instead focused on social media as that was like promoting the brand via word-of-mouth. The digital medium is the fastest way to reach our customers, that is why online marketing and sales have been our key go-to strategy.”
When it comes to core marketing objective, the brand’s marketing and product strategy is driven by consumer insights. “We have an experienced marketing team that tracks social media and other digital platforms to understand consumer trends and latent demands. Based on that marketing programs are developed to attract, acquire, and retain customers,” Chowdhary said.
Content takes precedence in Wow's marketing strategy, as the brand wanted customers to know its USP and unique formulations before they made a buying decision. “Besides doing the usual promos and discounts, we have used the power of YouTube and Instagram for promotions. The brand’s strategy was to spread awareness through product videos,” he added.
The millennials of today are constantly refreshing their timelines and influencers are a big part of their content feed. Therefore, the brand has taken to influencer marketing since its inception. Chowdhary stated, “We have seen that consumers tend to trust an influencer who is an ordinary person with the next-door neighbour vibe. They have a closer touchpoint with the consumers. Those who follow influencers are able to connect with them in a better way and take their advice more seriously. This works because most of them showcase the products in a more real-life scenario.”
However, in what may be considered a departure from its ‘relatable’ brand messaging, Wow Skin signed on Disha Patani as the line’s new face a few months ago. The brand has also roped in Bhumi Pednekar as brand ambassador for its range of skincare products. Says Chowdhary: "We have been working with regular influencers with a more regional and vernacular focus to develop a stronger connect with consumers in various tier markets. But now our brand has grown and is continuing to grow in a big way, and this means we needed to develop a brand connection at a bigger level. That is why we felt the need to have a young celebrity as the face of our brand. This is suitable in the time when there is a major market impact due to the pandemic and people are looking for ways to feel upbeat.”
Primarily, the brand is a digital-first organisation and has a presence in all online marketplaces like Amazon, Flipkart, Nykaa, Purplle, Big Basket, Myntra, and Health & Glow. But now it has also made its products available in brick and mortar stores and beauty retail spaces to enable customers to get a more direct feel of the brand. WOW Skin products are also available in more than 5,000 department stores and pharmacies across India.
However, Chowdhary shared that due to the pandemic, the physical retail space has taken a major hit and the recovery is still slow. At present, the focus will continue to be on the digital medium and online marketplaces.
He also shared that the brand has been able to garner a big chunk of loyal customers and it is all because of a strong customer service culture that reaches out to existing and new users with product support and beauty advice. “We try to ensure that each and every customer is satisfied with our products. We listen to them and if they are unhappy with any product or result, we provide support in choosing the right products. This is to ensure that we have repeat customers.”
Starting a business is one of the most financially demanding transitions a person can make. In the early months, expenses are immediate and often unpredictable, while revenue streams may take time to stabilise. For first-time entrepreneurs, securing small business loans can feel like a paradox: lenders expect a clean financial track-record before approving a loan, but the business cannot establish that track record without funding. Understanding the start-up lending environment in India and knowing the realistic funding options make this process far less daunting, allowing entrepreneurs to plan strategically.
Why Traditional Business Loans Are Harder for Start-ups
Most financial institutions require a minimum business vintage of 2 to 3 years before approving a term loan. This is because the first two years of operations carry the highest risk of failure. For start-ups less than 12 months old, traditional loan options are limited, and lenders often ask for substantial collateral to mitigate risk.
The vintage requirement is not arbitrary. Businesses that have survived their first two operating cycles demonstrate market viability, which significantly lowers the lender’s risk. Until this milestone is reached, entrepreneurs often rely on bootstrapping, personal savings, or alternative financing to build a stable business foundation. Understanding this reality helps first-time entrepreneurs set practical expectations when seeking funding.
Government-Linked Schemes for Startups
India offers several government-backed schemes to support first-time entrepreneurs. One such scheme is the Pradhan Mantri Mudra Yojana (PMMY), which provides collateral-free loans for micro and small enterprises in three categories:
● Shishu: up to Rs. 50,000
● Kishore: Rs. 50,000 to Rs. 5 lakh
● Tarun: Rs. 5 lakh to Rs. 10 lakh
These loans are available through eligible lending institutions, making them suitable for early-stage businesses. For first-time entrepreneurs, a Mudra loan not only provides initial working capital but also helps establish a credit history. Repaying a Mudra loan on time strengthens the entrepreneur’s profile and increases the chances of securing larger loans in the future.
Using Personal Loans to Fund Early-Stage Needs
When business loan eligibility is not yet established, a personal loan can serve as bridge funding. These loans are assessed on the individual’s credit profile and income rather than the business’s financial history, making them accessible to salaried individuals or those with a strong personal credit record.
Personal loans have limitations: the loan amount is capped based on personal income, and the interest rate is typically higher than secured business loans. Nevertheless, taking out a personal loan during the first 12 to 18 months can provide crucial support as the start-up builds its financial profile. It is especially useful for covering immediate expenses such as inventory, marketing, or office setup costs.
Alternative Financing Options for Startups
For start-ups that are not yet eligible for traditional business loans, other financing options are available through financial institutions. Many lenders offer startup-focused or small-business loans designed for early-stage businesses. These loans evaluate the entrepreneur’s personal credit profile, business plan, and projected revenue rather than relying solely on business vintage. Financial institutions such as Tata Capital provide these loans with minimal documentation and fast disbursal, enabling entrepreneurs to manage operational expenses, purchase equipment, or fund early growth initiatives without pledging collateral.
Some lenders also offer flexible loan amounts, quicker approvals, and streamlined processes, making them well-suited for first-time entrepreneurs. Exploring these options early allows start-ups to access working capital while gradually building a credit history that will support larger loans in the future.
Building the Right Financial Profile Before Applying
For entrepreneurs planning to apply for a business loan in 12 to 18 months, the preparation period is critical. Key steps include:
● Filing Income Tax Returns (ITRs) consistently and accurately from the first year
● Maintaining a clean current account with regular deposits and no overdraft patterns
● Keeping the promoter’s CIBIL score above 750
Lenders assess start-ups by examining these signals. Entrepreneurs who maintain financial discipline from the start will have stronger loan applications after two years. Additionally, tracking cash flow and avoiding irregular withdrawals can further enhance the business’s credibility.
Collateral-Based Options for Larger Requirements
Startups requiring larger amounts beyond government schemes can consider loans against property. These loans allow entrepreneurs to access larger amounts of funding at lower interest rates, as the property secures the lender’s risk.
This option carries significant risk: using personal or family assets as collateral can result in a loss if the business does not perform as expected. Such loans should be considered only when the business plan is validated, the entrepreneur has clear cash flow projections, and the repayment strategy is realistic. Careful assessment of risk versus reward is essential before pledging assets.
Practical Steps to Strengthen Your Loan Application
To maximise the chances of approval, entrepreneurs should:
● Maintain accurate financial statements, bank records, and GST returns.
● Avoid over-borrowing; apply for realistic amounts that match business needs.
● Keep personal and business credit profiles in good standing.
● Explore lenders that offer startup-friendly products.
● Be transparent and complete in all documentation.
Taking these steps early ensures a smoother and faster loan process when the business is ready for formal financing. A well-prepared application reduces processing delays and demonstrates professionalism to the lender.
Conclusion
First-time entrepreneurs often face a funding gap in the early stages, but it is usually smaller than it appears. Maintaining clean banking records, filing ITRs consistently, and exploring personal loans, government schemes, and alternative financing options help build a strong financial profile. Entrepreneurs who plan systematically from day one are better positioned to access formal credit sooner, giving their start-ups financial stability through small business loans.
The ideal time to start building a credit-worthy business profile is the very first month of operations, not when applying for a loan. By understanding available funding options and acting proactively, first-time entrepreneurs can confidently apply for a business loan and set their businesses on a path to long-term growth.
