Fashion e-tailer High Street Essentials reports ₹1.3 crore profits in FY19
BENGALURU : Delhi-based fashion e-tailer, High Street Essentials Pvt. Ltd. (HSE), the parent company behind women-centric fashion brands, FabAlley and Indya, has reported a net profit of ₹1.3 crore, on net revenues of ₹90.2 crore for the financial year ended March 2019, registering a 70% year-on-year revenue growth.
According to the company’s unaudited financial results releases on Sunday, it’s EBITDA stood at ₹3.3 Cr for FY19, however, it did not reveal expenditure numbers. HSE’s co-founder Tanvi Malik told Mint that a majority of its sales came from online channels accounting for around 55% to 57% percent of the sales during FY19.
Around 45-50% of its sales from its own website are repeat purchases, while around 40% of the entire website sales come from foreign markets such as the US, UK, Middle East, and South East Asia, according to co-founder Malik.
Founded in 2012, by Malik and Shivani Poddar, FabAlley was the company first private fashion brand which sells products across categories including apparel, footwear, and accessories. In 2016, HSE launched, Indya, an ethnic-fusion brand, to cater to the growing demand for contemporary Indian wear.
HSE currently operates around 30 brick-and-mortar stores, 350 shops-in-shops—an offline retail model that allows HSE to place its inventory within large format fashion stores. Gross sales across all its channels for FY19 stood at ₹125.5 crore.
In a move to capture the fashion accessories market, HSE is set to launch its jewelry brand, Zyra. Priced between INR 600 – 3000, the brand will target millennial Indian women.
In the next 12-18 months, HSE also aims to expand its retail footprint by increasing its exclusive brand stores’ count to 50 and doubling its shop-in-shops to more than 600. Other competitors in the omnichannel fashion retail space include Myntra, FabIndia, Craftsvilla, Nykaa, and several others.
“FY19 has marked our transition from a primarily online company to an omnichannel entity while ensuring our infrastructure, supply chain, and product lines expanded efficiently to accommodate both online and offline retail growth with continued capital efficiency. The company is on track to close FY20 with gross sales of INR 220 Cr, at a growth of 75% over FY19, with EBITDA and PAT-level profitability,” both Malik and Poddar said in a joint statement.
In December 2018, the company raised ₹60 crore in a Series B round of funding by SAIF Partners. It also raised another $2 million in a Series A round from India Quotient, FAO Ventures, Indian Angel Network, and others in October 2016.[“source=livemint”]