How two sisters from Hyderabad are earning Rs 27 crore a year by selling hair extensions

The brand amassed Rs 27-crore revenue in FY22-23 and is on track to earn Rs 31 crore this year.

CNBC-TV18 Next Gen caught up with Richa to know more about her journey.

"At 1 Hair Stop, we understood the profound impact hair has on a woman's life. Hair-related problems can shatter one’s confidence and affect emotional well-being," Richa, the Co-Founder of 1 Hair Stop, told CNBC-TV18.

She explained that in India, a considerable number of women face hair challenges, from thinning to loss. The reasons range from conditions like alopecia, cancer treatments, and postpartum changes.

The motivation behind 1 Hair stop

"We realised there wasn't a one-size-fits-all solution in the market that addressed these challenges. With 1 Hair Stop, we aimed to break the stigma around hair loss and provide real solutions that work," said Richa.

Their journey began when they recognised a gap in the Indian market, despite India being a global hair export leader. "We saw an opportunity and decided to develop our own line of high-quality hair products tailored specifically to the unique needs of Indian women," she added.

The sisters’ personal backstory also played a vital role in their journey. Raised in Hyderabad, Richa's passion for beauty and fashion was there from a young age. "I always knew my career would be in this space," she said. Her father's involvement in the hair business for over a decade and a half further fuelled her determination. After completing her studies and gaining experience working alongside her father, Richa joined the family business. She initially focused on wholesale exports before launching 1 Hair Stop in 2019, with the aim of serving the Indian market directly.

From 1-3 orders to 150-160

Since its inception, 1 Hair Stop has experienced good growth, evolving from a startup into a dominant industry player. In its early days, the brand began with a modest marketing budget of Rs 10,000, primarily allocated to online advertising. "Now we allocate between Rs 10-16 lakh per month for marketing, a testament to our tremendous expansion," Richa said. While the brand exports products worldwide, 75 percent of its revenue comes from India, with the remaining 25 percent from countries like the US, UK, Canada, Australia, UAE, and Singapore.

"We've received over 1.2 lakh orders and sold more than 2.1 lakh products, with total sales exceeding Rs 61 crore," Richa added. Notably, 2022 proved to be the most profitable year for the brand as the company recorded 47,000 orders, selling 90,000 products, and achieving a revenue of Rs 27 crore in FY2022-23.

Now the brand is looking at Rs 31-crore revenue for FY2023-24.

Setback because of the pandemic

Yet, the journey has been far from smooth. Richa recalled the tumultuous period during the COVID-19 pandemic when they launched their website just before the lockdowns hit. A surge in online shopping led to numerous orders, mostly cash-on-delivery (COD), resulting in a high rate of returns and cancellations. It was a challenging phase for the brand.

Another challenge that the brand has faced was to do with creating awareness for such a niche market — that too as an Instagram community at the beginning.

"Figuring out how to properly educate people without prior context or knowledge of hair extensions and their wide range of applications was challenging. We indulged in creating social media videos. I have always been camera shy so it was big step for me and it all worked out well," she added.

Gen Z's craze with hair extensions

One of the reasons for the boost in the hair care industry is also the proclivity of Gen Z to experiment with hairstyles. A walk down social media will show that zoomers are now deeply into the clean girl aesthetic, fairy girl trend and the Barbiecore aesthetic. And all these require forms of hair extensions.

1 Hair Stop has been quick to spot that.

"Gen Z loves experimenting with their hair, so we are big in social media with trends — and launching more products for the generation," Richa said.

1 Hair Stop’s portfolio includes colourful streaks, messy buns, pony tails, flyfix and lace and silk toppers — all of which are a rage with Gen Z

The brand plans to venture into the offline space by launching an ‘experiential centre’ in Hyderabad, aiming to offer customers a tactile experience with hair extensions. Additionally, the brand is working on expanding its haircare range, exploring collaborations with salon networks and introducing Indian consumers to semi-permanent hair extensions — clearly  it means business for all things hair.