Bollywood actress Kriti Sanon was recently in the spotlight after reports claimed her skincare brand, Hyphen, had crossed Rs 400 crore in sales within just two years of its launch.
The number drew praise from fans and industry insiders. However, a closer examination suggests the claim may be more hype than fact.
Industry analysts pointed out that Hyphen had reported Rs 7.5 crore in revenue in 2023. Jumping to Rs 400 crore in 2024 would mean a staggering 5,600% growth.
Experts say such a leap is highly unrealistic in the skincare market, where annual growth of 20–30% is considered impressive.
This leads to speculation that Hyphen may be using financial terms often adopted by startups to boost brand image. One such tool is Annual Recurring Revenue (ARR) or Annual Run Rate.
ARR multiplies short-term sales to estimate annual revenue. While this works for subscription-based businesses, it can be misleading when applied to fast-moving consumer goods.
For example, selling Rs 1 crore worth of products on a single day doesn’t mean Rs 365 crore in yearly earnings can be assumed.
The issue becomes bigger when media houses report such numbers without fact-checking. Several prominent outlets shared the Rs 400 crore claim without verifying its validity.
Since private startups are not legally required to publish full financials, partial data is often highlighted to create a larger-than-life brand image.
Such practices not only raise doubts about individual brands but also harm the credibility of India’s startup ecosystem.
Inflated figures create false benchmarks, overshadow genuine growth stories, and can lead investors to distrust promising ventures.
Brands and media must focus more on long-term, sustainable progress instead of flashy headlines.
